Rent and Income QC Guide - NHLP · 2018-10-25 · Rent and Income Determination Quality Control...

RENT AND INCOME DETERMINATION QUALITY CONTROL MONITORING

GUIDE FOR MULTIFAMILY HOUSING PROGRAMS

“The right benefits go to the right persons”

U.S. Department of Housing and Urban Development Office of Multifamily Housing Programs

____________________________________ _________ Assistant Secretary for Housing-Federal Housing Commissioner Date

The information collection requirements contained in this Rent and Income Determination Quality Control Monitoring Guide for Multifamily Housing Programs were approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). Approval of the Rent and Income Determination Quality Control Monitoring Guide for Multifamily Housing Programs is covered by OMB control number 2502-0178. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a valid control number.

September 2008 RENT AND INCOME DETERMINATION QUALITY CONTROL MONITORING GUIDE FOR MULTIFAMILY HOUSING PROGRAMS

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RENT AND INCOME DETERMINATION

QUALITY CONTROL MONITORING GUIDE FOR MULITFAMILY HOUSING PROGRAMS

TABLE OF CONTENTS

PART I. INTRODUCTION AND PURPOSE ................................................................................... 1 PART II. QUALITY CONTROL MONITORING OF RENT AND INCOME DETERMINATIONS2

A. COMPONENTS OF A REVIEW .......................................................................................... 2 1. Scheduling the Review ........................................................................................................2 2. Confirming the Review in Writing .......................................................................................2 3. Prior to the On-Site Review (Desk Review) ........................................................................2 4. Holding an On-Site Entrance Conference with Participating Project Staff........................3 5. Conducting the Review ........................................................................................................3 6. Holding an Exit Conference with Participating Project Staff .............................................3 7. Preparing the Written Report..............................................................................................4 8. Communicating the Review Report to the Owner ...............................................................4 9. Following Up ......................................................................................................................5 10. Closing out the review ........................................................................................................5

B. ASSESSING O/A’S MANAGEMENT OF OCCUPANCY RESPONSIBILITIES .................... 5 C. SELECTING PROJECTS AND CONTRACTS FOR QUALITY CONTROL REVIEWS .......... 8 D. CONDUCTING THE DESK REVIEW ............................................................................... 10

1. In-office Resources ............................................................................................................ 10 2. TRACS ............................................................................................................................... 10 3. EIV Reports ....................................................................................................................... 14 4. OPIIS Integrated Risk Assessment (IRA) Score ................................................................ 19 5. Reference Materials .......................................................................................................... 19

E. CONDUCTING THE ON-SITE REVIEW ........................................................................... 20 1. Tenant File Sample Selection ............................................................................................ 20 2. Key Topics for Quality Control Monitoring of Rent and Income Determinations ............ 21 3. Monitoring O/A’s EIV Compliance ..................................................................................... 29

F. POST-REVIEW ACTIVITIES AND FOLLOW-UP .............................................................. 34 1. Introduction to Preparing and Issuing a Report ............................................................... 34 2. Recording and Documenting Income and Rent Determination Errors and Findings ....... 34 3. Follow-ups and Resolutions of Income and Rent Errors and Findings ................................ 36

PART III. TRACKING ERRORS .................................................................................................. 39 ATTACHMENT 1 – FACT SHEETS ON “HOW YOUR RENT IS DETERMINED” ..................... 40

BELOW MARKET INTEREST RATE...................................................................................... 1 PROJECT-BASED SECTION 8 ................................................................................................ 5 RENTAL ASSISTANCE PAYMENTS (RAP) ........................................................................... 9 RENT SUPPLEMENT ........................................................................................................... 13 SECTION 202/162 – PROJECT ASSISTANCE CONTRACT (PAC) ........................................ 17 SECTION 202/811 – PROJECT RENTAL ASSISTANCE CONTRACT (PRAC) ....................... 17 SECTION 236 ....................................................................................................................... 21

ATTACHMENT 2 – TENANT FILE SAMPLE ................................................................................ 1 ATTACHMENT 3 – TRACS QUERY REPORTS ............................................................................ 1 ATTACHMENT 4 – SAMPLE ELIGIBILITY, INCOME, AND DEDUCTION CHECKLIST ......... 1 ATTACHMENT 5 – REQUIRED TENANT FILE DOCUMENTATION.......................................... 1 ATTACHMENT 6 – INSTRUCTIONS FOR COMPLETING THE TENANT FILE REVIEW

WORKSHEET ....................................................................................................... 1 ATTACHMENT 7 – HUD-9834 ........................................................................................................ 1 ATTACHMENT 7A – ADDENDUM A ........................................................................................... 30


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ATTACHMENT 7B – ADDENDUM B ........................................................................................... 34 ATTACHMENT 7C – ADDENDUM C ........................................................................................... 47 ATTACHMENT 8 – TENANT FILE ERROR SUMMARY .............................................................. 1 ATTACHMENT 9 – HUD-50059, OWNER’S CERTIFICATION OF COMPLIANCE WITH HUD’S

TENANT ELIGIBILITY AND RENT PROCEDURES ........................................... 1 ATTACHMENT 10– EIV REPORTS ............................................................................................... 1 ATTACHMENT 11– EIV SECURITY CHECKLIST ....................................................................... 2

List of Tables

TABLE 1 – RISK FACTORS FOR DETERMINING SELECTION REVIEWS ............................... 9 TABLE 2 – ON LINE REFERENCE MATERIALS........................................................................ 19 TABLE 3 – APPLICANT INTAKE PROCEDURES ....................................................................... 23 TABLE 4 – WAITING LIST MANAGEMENT .............................................................................. 24 TABLE 5 – TENANT SELECTION PLAN ..................................................................................... 24 TABLE 6 – VERIFICATION AND CALCULATION OF INCOME AND RENT ........................... 26 TABLE 7 – CERTIFICATION AND RECERTIFICATION ACTIVITIES ..................................... 27 TABLE 8 – TENANT FILE REVIEW ............................................................................................ 28

List of Exhibits

EXHIBIT 1 – MINIMUM FILE SAMPLE ...................................................................................... 20 EXHIBIT 2 – FILE SAMPLE COMPOSITION .............................................................................. 21


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LIST OF ACRONYMS

ACC Annual Contributions Contract APPS Active Partners Performance System

CA Contract Administrator CAOM Contract Administrator Oversight Monitor

CFR Code of Federal Regulations EIV Enterprise Income Verification System ETL Error Tracking Log

FASS Financial Assessment Subsystem FMC Financial Management Center GPO Government Printing Office

Guide Rent and Income Determination Quality Control Monitoring Guide for Multifamily Housing Programs

HAP Housing Assistance Payment HQS Housing Quality Standards HUD U.S. Department of Housing and Urban Development

HUD 4350.3 REV-1

Occupancy Requirements of Subsidized Multifamily Housing Programs

HUD-50059

Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures

HUD-9834 Management Review for Multifamily Housing Projects IG Inspector General

IPA Independent Public Accountant iREMS integrated Real Estate Management System

LDP Limited Denial of Participation MOR Management and Occupancy Review

NDNH National Directory of New Hires O/A Owner(s)/Agent(s)

OAHP Office of Affordable Housing Preservation OIG Office of Inspector General

OPIIS Online Property Integration Information Suite PASS Physical Assessment Subsystem PBCA Performance-Based Contract Administrator PD&R Office of Policy Development and Research

PIC Public and Indian Housing Information Center PRAC Project Rental Assistance Contracts RHIIP Rental Housing Integrity Improvement Project

SS Social Security SSI Supplemental Security Income

TCA Traditional Contract Administrator TPA Transfer of Physical Assets

TRACS Tenant Rental Assistance Certification System TTP Total Tenant Payment

2530 Flags Flags from Previous Participation Certification Submission


PAGE 1 OF 173 September 2008

PART I. INTRODUCTION AND PURPOSE

The Rent and Income Determination Quality Control Monitoring Guide for Multifamily Housing Programs (Guide) was developed as part of the HUD-wide Rental Housing Integrity Improvement Project (RHIIP) effort to reduce errors in income and rent determinations and to ensure that the right benefits go to the right persons.

This Guide provides guidance to contract administrators (CAs) in conducting on-site occupancy monitoring reviews of HUD’s assisted multifamily (MF) housing. A CA may be HUD staff, a performance-based contract administrator (PBCA), or a traditional contract administrator (TCA). The primary objectives of the reviews described in this Guide are:

To detect and reduce errors in income and rent determinations

To reduce rent underpayments and/or overpayments by residents

To maximize HUD’s housing resources, thereby assuring maximum participation in HUD’s housing programs by as many eligible families as possible

The Guide should be used in conjunction with the Leasing and Occupancy section of Form HUD-9834, Management Review for Multifamily Housing Projects. The purpose of this Guide, is to provide technical assistance to the CA to ensure that quality control monitoring of income and rent determinations during management and occupancy reviews (MORs) is adequate and effective.

This Guide provides technical guidance and tools designed to provide the reviewer with a systematic approach to monitoring income and rent determinations and ensuring that errors are corrected. This approach will allow HUD to assess the errors on a national basis and track the reduction in errors to ensure that HUD’s goal to significantly reduce errors is accomplished.

Additional guidance pertaining to the management review process and occupancy requirements are addressed in HUD Handbooks 4350.1 REV-1, Multifamily Asset Management and Project Servicing; Handbook 4350.3 REV-1, Occupancy Requirements of Multifamily Housing Programs; and, the Special Claims Processing Guide.

Information regarding the extent, severity and costs of errors that exist in HUD’s rental assistance programs are summarized in the Quality Control for Rental Assistance Subsidies Determination study reports and the Performance and Accountability Reports (PARs). These reports are posted at http://www.huduser.org and http://www.hud.gov/offices/cfo/reports/cforept.cfm respectively.

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PART II. QUALITY CONTROL MONITORING OF RENT AND INCOME DETERMINATIONS

A. Components of a Review

A MOR involves:

1. Scheduling the Review

a. Schedule date for the on-site review with the owner/agent (O/A).

NOTE: When scheduling the date for the review the O/A should be asked whether data from the Enterprise Income Verification (EIV) system is being used when processing recertifications. This information is needed when preparing for the review (see Part II, Section D.3).

b. Secure Systems users must record the date for the scheduled review in the integrated Real Estate Management System (iREMS).

2. Confirming the Review in Writing

a. Confirm the scheduled review in writing at least two weeks prior to the date of the review.

b. Identify the documents that should be made available to the reviewer by the O/A during the review by completing and enclosing with the written confirmation the checklist in Addendum C of form HUD-9834 (Attachment 7-C).

c. Identify the O/A’s staff members who should be present during the review.

d. Identify the date, time, and members of the review team.

3. Prior to the On-Site Review (Desk Review)

a. Review key in-office resources such as project files, prior reviews and audits, tenant complaints, systems reports, etc.

b. Review reference materials such as current income limits, rent schedules, and relevant HUD regulations, notices, manuals, guidebooks and handbooks.

c. Complete the relevant questions in the Desk Review section of form HUD-9834 (Attachment 7).

For more information on conducting the desk review, see Section D of this Guide.



4. Holding an On-Site Entrance Conference with Participating Project Staff

a. Explain how the monitoring review will be conducted.

b. Identify key staff that will be assisting in the review.

c. Confirm activities and files that will be reviewed.

d. Explain the process of CA reporting of findings that may be discovered during the review, and O/A resolution requirements.

5. Conducting the Review

a. Use program statutes, regulations, handbooks, manuals and the Leasing and Occupancy portion of Form HUD-9834 (Attachment 7) as a guide.

b. Review a sample of tenant files using the Tenant File Review Worksheet, Addendum A of form HUD-9834 (Attachment 7-A).

c. Review O/A’s policies and procedures.

d. Document evidence that supports conclusions made during the review.

e. Determine if errors or deficiencies are isolated incidences or repeated incidences.

f. Interview O/A’s staff responsible for performing specific duties and implementing policies.

6. Holding an Exit Conference with Participating Project Staff

a. Communicate the results of the review. The results are summarized orally at the exit conference and followed up by a written report of concerns, errors, and findings.

b. The conclusions may be:

1) Recognition—there were achievements.

2) Observations—there were concerns or errors that may become findings if not corrected.

3) Findings—there were conditions that are not in compliance with regulation or statutory requirements.



4) Calculation Errors – there were errors discovered during the tenant file review resulting in incorrect subsidy payment.

7. Preparing the Written Report

Prepare a formal written report using form HUD-9834 (Attachment 7), recording deficiencies, findings and corrective actions.

8. Communicating the Review Report to the Owner

a. The Reviewer will record deficiencies, findings and corrective actions. Findings must include the condition, criteria, cause, effect and required corrective action.

• Condition describes the problem or deficiency.

• Criteria cite the statutory, regulatory or administrative requirements that were not met.

• Cause explains why the condition occurred.

• Effect describes what happened because of the condition.

• Corrective action provides what the O/A must do to eliminate the deficiency. The corrective action must include a requirement that the O/A determine and correct not only the discovered errors and omissions, but also describe how and what systems, controls, policies and procedures were adjusted or changed to assure that the errors and omissions do not re-occur.

Complete the Summary Report as follows:

1) Based on the Report of Findings, the Reviewer will assess the overall performance for each applicable category. The Reviewer must indicate A (Acceptable) or C (Corrective action required) and include target completion dates (TCD) for all corrective action items. For those items not applicable, indicate “N/A” in the TCD column.

2) For each of the categories applicable to the occupancy portion of the review form (A, B, C, D, E, F, or G), rate each category by checking Superior, Above Average, Satisfactory, Below Average, or Unsatisfactory. If a section was not completed, indicate “Not Rated”. After rating the applicable categories, the ratings will be used in the overall rating assessment. Additional guidance for ratings can be found in HUD Handbook 4350.1, REV-1, Multifamily Asset Management and Project Servicing.



b. Distribute the Summary Report and cover letter as follows:

1) Project Owner (original)

2) Management Agent (copy)

3) HUD office for PBCA reviews rated below average or unsatisfactory

4) HUD office for all TCA reviews

*A copy of the completed form HUD-9834 and supporting documents must be maintained in the project file.

c. If a below average or unsatisfactory rating is determined, the owner must be afforded an opportunity to appeal. Guidance on appeal procedures is provided in HUD Handbook 4350.1, REV-1 Multifamily Asset Management and Project Servicing.

d. Secure Systems users must record the date the review was conducted and any other required data in iREMS.

e. Record and track errors in income and rent determination in accordance with interim reporting requirements issued under a separate directive from this Guide.

9. Following Up

a. Monitor the owner’s progress in resolving findings identified in the report.

b. Track responses in iREMS or by using a calendar tickler, etc.

c. Apply sanctions against owners who are non-responsive or who fail to cure deficiencies.

10. Closing out the review

a. Close out the review when acceptable response or corrective action plan is received from owner.

b. Secure Systems users must document the date the review is closed in iREMS.

B. Assessing O/A’S Management of Occupancy Responsibilities

The O/A should, and in some cases are required to, design internal policies, procedures, and processes to manage occupancy responsibilities. This section includes issues to consider when performing a review of the O/A’s management practices.



The management of occupancy responsibilities at a property involves many elements, including:

O/A’s organization and staffing, both on-site and corporate

Training and technical support for both on-site and corporate staff

Tenant selection plan – development and execution of the plan

Development and execution of Policies and Procedures for:

o Applicant Intake

o Waiting List Management

o Initial Certification

o Annual Recertification

o Interim Recertification

o Verification

o Communication, both verbal and written, with applicants and tenants

Tools used to identify family circumstances, sources of income. e.g. EIV system and other necessary information

Understanding software programs (as applicable) that automate the occupancy management process and income and rent calculations

Submission of required information to HUD, including mandatory tenant income and family characteristics submitted electronically to the Tenant Rental Assistance Certification System (TRACS) by the O/A or by the CA, who will, after reviewing the data, submit the data to TRACS on behalf of the owner

Policies and procedures used to validate and correct outstanding voucher and tenant information

Security policies and procedures for safeguarding tenant data

The occupancy function is comprised of a group of interrelated activities. Each O/A may have different policies and procedures to handle these responsibilities. For example, an O/A may perform all determinations of rent manually and provide the information to a service provider for automated submission directly to TRACS or to the CA who will, after reviewing the data, submit the data to TRACS on behalf of the owner. Another O/A may have computer software to accomplish the determinations of rent and to submit the information directly to TRACS or to the CA who, after reviewing the data, will submit



the data to TRACS on behalf of the owner. However, all processes and policies used must be consistent with HUD’s policies and regulations.

When conducting a review focused on income and rent determination, the reviewer must understand how an O/A manages occupancy tasks and responsibilities. The reviewer needs to be knowledgeable of an O/A’s occupancy policies and procedures and understand how activities are interrelated. Knowledge of the O/A’s occupancy policies and procedures will help the reviewer to detect and understand income and rent determination errors and their underlying causes. The reviewer should always be cognizant of the larger occupancy function of a property in addition to how the unique occupancy policies and procedures of that property impact determinations of income, rent, and subsidy payment.

Functional areas that should be assessed during the review include:

The knowledge and skill levels of the on-site staff performing occupancy functions as well as corporate staff who oversee this process.

Staff should understand and apply HUD’s occupancy rules and regulations and the O/A’s internal policies and procedures. Staff should be able to readily produce a copy of the most current HUD Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs.

The training program provided for all staff, both corporate oversight and on-site staff performing income and rent determinations.

Training should be available for new staff and seasoned staff. Assess O/A’s process for keeping staff informed of changes in procedures or HUD requirements.

Internal quality control systems developed by the O/A as a “check” on income and rent determinations.

Quality control systems need not be elaborate to be effective. A common quality control system is a review of O/A’s staff income and rent determinations by a supervisor or management company occupancy specialist, as well as procedures used to resolve and eliminate errors made.

Occupancy policies on admissions, recertifications, interim recertifications, income determinations, and rent calculations.

Changes in laws, regulations, or HUD policies should have been incorporated into the O/A’s policies and the policies should reflect the actual practices used at the project.

O/A’s “job-aids” used for occupancy management and income and rent determinations.

Forms, worksheets, guides, and other job aids should accurately reflect current program requirements and result in correct income and rent determinations.

Computer software or computer programs used to automate management of the occupancy processes. The reviewer should have the O/A’s staff “walk” them through the system, describing and explaining the various data screens, data input requirements, and system-generated reports. The reviewer must ensure that the system handles occupancy requirements, as appropriate, and



that the O/A’s staff understands how and why their system handles occupancy data as it does.

Unique approaches the O/A may have developed to handle occupancy functions.

Examples of areas where unique approaches may be employed by the O/A are: how information is gathered and verified; use of processes, forms, worksheets, and checklists developed in-house; and use of computer software applications. The reviewer must understand unique approaches to adequately monitor the O/A’s occupancy processes.

The processes for accepting and processing applications, scheduling and processing recertifications, conducting interviews, and gathering necessary information are crucial for successful income and rent determinations.

Use of the EIV system and established security procedures for safeguarding tenant data.

Reviewers should encourage O/As to subscribe to the MF RHIIP Listserv as a tool to assist them in keeping their staff up-to-date on HUD policy changes and notifications. O/As can subscribe at: www.hud.gov/subscribe/mailinglist.cfm

C. Selecting Projects and Contracts for Quality Control Reviews

The risk to HUD subsidy funds should be considered when scheduling monitoring reviews. A risk analysis should be conducted on all projects where HUD is the CA to determine the order to schedule reviews for projects or contracts in the HUD portfolio. PBCAs and TCAs may conduct a risk analysis as part of their preparation for the annual review of contracts assigned to them.

The selection of a project or specific assistance contract for review is based on an evaluation of the project or contract risks—meaning that there are factors that indicate the potential for errors in determining income and rent. This risk may result in a loss of subsidy funds to the government or a reduced benefit to the tenant. Monitoring based on risk does not mean that only projects and contracts with a potential for great risk are selected for review; however, projects and contracts that exhibit the greatest risk should be scheduled first. All projects and contracts should be reviewed periodically. Reviews should be conducted at least every three years for projects and contracts administered by HUD. However, where staff determines, based on their risk evaluation, that a project or contract may have high errors in income and rent determinations, consideration should be given to conduct annual on-site reviews or periodic remote reviews using information from the TRACS and EIV systems. PBCAs and TCAs are to conduct reviews at least annually for contracts they administer.

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The following factors should be considered when determining the risks associated with projects or contracts during the review selection process:

TABLE 1 – RISK FACTORS FOR DETERMINING SELECTION REVIEWS

1 The amount of funding expended—high subsidy payments versus low subsidy payments 2 Transfer of physical assets (TPA) to first time participants 3 New management, change in key staff, or poorly trained staff 4 Uncooperative management 5 Office of Affordable Housing Preservation (OAHP) Watch List project/contract 6 Owner has outstanding flags resulting from their Previous Participation Certification submission (2530

flags) 7 Project has high vacancy 8 Poor performance rating: management reviews, physical inspections (abatement of units not meeting

Housing Quality Standards (HQS)), or annual financial statements (auditor reports findings relating to tenant files or management practices)

9 New contracts (Section 202/811 Project Rental Assistance Contracts (PRACs)) 10 High volume of fair housing complaints, tenant complaints, or community complaints 11 Length of time since last review 12 Mix of program types for single project 13 TRACS Project Evaluation Query reflects an excessive number of households with zero income,

paying minimum rent, having no assets, or having no medical expenses 14 HUD-50059 tenant data in TRACS is for less than 90 percent of assisted units 15 Housing Owners Certification and Application for Housing Assistance Payments (HUD-52670) voucher

not being transmitted 16 Project not receiving subsidy payments, in default or financial distress, co-mingling funds from another

source, taking advances from the Reserve for Replacements account, or having other financial problems

17 Housing Assistance Payment (HAP) adjustments on the HUD-52670 voucher are out-of-line with previous adjustments and/or very large adjustments shown under miscellaneous

18 HUD-52670 voucher requests consistently exceed the 180 percent threshold rule, requiring the FMC to review the voucher

19 High number of student households

20 Online Property Integration Information Suite (OPPIS) rating

21 High number of tenants with income discrepancies reported in EIV

22 High number of tenants receiving subsidy at more than one location as reported in EIV

23 Two or more contracts for the same property have been merged to create one remaining contract - filing for both the original contract and the merged contract

24 Properties with recurring problems in providing complete and accurate information; that continually submit vouchers late; or have a low compliance percentage.



D. Conducting the Desk Review

Prior to an on-site visit, the reviewer should research information available in the CA’s office files. This in-office information should be used to gain a better understanding of the processes used at the project and to help focus the on-site monitoring effort. The reviewer should gather and organize as much material as possible prior to the on-site review. Pre-review of in-office information can save valuable on-site review time.

1. In-office Resources

This section focuses on resources available to the reviewer in the office, including:

Owner policies (if available)

EIV Data/Reports

Prior reviews and audits, including unsatisfactory or below average scores in the Leasing and Occupancy section of the management review, physical inspections, independent public accountant (IPA) audits, and Inspector General (IG) audits

General office files with information on tenant complaints and other issues involving the project

TRACS reports and queries

iREMS data to check current rents, previous MOR ratings; REAC inspections and ratings; and any additional summary information

Statutes and regulations

Online Property Integration Information Suite (OPIIS) rating

2. TRACS

This section discusses how TRACS can be used to prepare for the income and rent quality control review. The reviewer will examine TRACS reports for the project and contract(s) to identify specific income- and rent-related issues, particularly income and rent discrepancies in the voucher and certification reports. Where discrepancies are noted, specific tenant families may be identified as candidates for the on-site tenant file sample review. Section 2.b, below, identifies queries available to the reviewer. The queries will be used to:

Determine owner compliance

Validate and correct voucher and tenant information



Validate and correct subsidy tracking and payments

TRACS information is the centerpiece of the monitoring efforts for an on-site review of income and rent determinations. It is critical that the information in TRACS be consistent with the original source documentation at the project.

a. Accessing TRACS Queries

HUD staff can access the TRACS queries by logging into the Secure System on the HUD web site using their H-ID and password and then selecting “Tenant Rental Assistance Certification System (TRACS)”: https://hudapps.hud.gov/ssmaster/index.cfm

Other CAs, if they have the authority, can access the TRACS queries at the TRACS Home Page by selecting “Secure Sign-in”, signing in using their M-ID and password, and then selecting “Tenant Rental Assistance Certification System (TRACS)”:

b. TRACS Queries

http://www.hud.gov/offices/hsg/mfh/trx/trxsum.cfm

There are two categories of TRACS queries—voucher queries and tenant queries. Each is discussed below.

(1) Voucher queries

(a) This query provides a summary of information derived from the form HUD-52670, Housing Certification and Application for Housing Assistance Payments, within a specified date range. This query provides two tables of data: The first table displays Voucher Unit Summary information for the voucher months selected. The reviewer can use this table to determine utilization of subsidized units. The table may also be used for completing Question 45 of the Desk Review section of form HUD-9834 regarding vacancy at the project being reviewed. The second table displays the voucher payment summary for the voucher months selected.

Contract/Project-Based Voucher Summary Query

(b)

This query provides a listing of the active tenant certifications at the contract or project level used in determining the O/A’s compliance with submission of tenant certifications. The compliance percentage the O/A must obtain is a percentage established by HUD. The reviewer can use this query to determine whether or not the O/A is in compliance with submission of tenant data to TRACS. The reviewer can query for the entire portfolio assigned to a particular Field Office

Voucher Tenant Compliance Query

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or for a specific project or contract. The reviewer should follow-up with O/As who are not in compliance and, if necessary, offer the O/A guidance and technical assistance for bringing the project in compliance.

(2) Tenant Queries

(a)

There are two queries, Certification Query and Assistance Payment Query, which provide the reviewer with a listing of tenant certifications submitted by the O/A. The Certification Query includes for each household all certifications that have been submitted with an effective date in the future plus the most current certification with an effective date within the last 15 months. The Assistance Payment Query provides the reviewer a listing of tenant certification information based on the contract/project number and date range specified by the reviewer. The reviewer will use these queries to determine if the O/A is transmitting tenant certifications, if the certifications are current, if there were any certification discrepancies, the citizenship status of the household and the assistance requested for each unit.

Certification Query and Assistance Payments Query

In the Certification Query, by selecting the linked name within the Tenant Name field for a particular household, the reviewer can access other options. By selecting the Certification History List option, the certification history for a unit can be accessed. By selecting the Certification Discrepancies option, the certification discrepancies for a unit can be accessed. The reviewer should review the types of discrepancies to determine whether or not the O/A is required to transmit corrections to TRACS.

(b)

Certification with Discrepancy Query

This query displays a listing of those certifications containing a discrepancy for the project or contract number selected by the reviewer. The reviewer can use this query to review the types of discrepancies to determine if the O/A is required to transmit corrections to TRACS and if the O/A is resolving discrepancies in a timely manner.



(c) Late Certification Query

This query lists households within a contract or project that are late in recertifying. Users may specify whether the report will include all certifications, exclude terminations, list HQ terminations only, or only list terminations. This report can be used by the reviewer to determine the O/A’s compliance with submission of recertifications and for certifications that have been terminated and whether the termination was the result of an action taken by the O/A or by HUD Headquarters.

(d) Move-in/Move-out Query

This query should be used to view the move-in and move-out activity reported by the O/A for a specified period. From this query, the reviewer will be able to determine if the move-out action was initiated by the O/A or by the tenant. Excessive move-in and move-out activity can indicate that there are problems at the project.

(e) Multiple Occupancy Query

This query should be used to determine if any units are occupied by multiple active heads of households. The reviewer will also be able to determine if a head of household is occupying units in more than one assisted project. (Also see the Multiple Subsidy Report in EIV.)

(f)

Project Evaluation Query

This query should be used to assist with evaluating potential concerns at the project. This report may also provide insight for pre-selecting tenant files for review. This query provides the reviewer with information relating to changes in assets, households with no income, households paying the minimum rent, and elderly/disabled households without medical expenses.

(g)

This query provides the reviewer with certifications containing discrepancies as a result of the electronic review of the data submitted by the O/A. The reviewer will use this query to make sure the O/A is resolving the discrepancies and resubmitting corrected data when applicable.

Certification with Discrepancies Query



(h) This query should be used to determine if the O/A is using the correct income limits and approved unit rents. The reviewer can also use this report to determine if units are being over or under utilized based on generally accepted occupancy standards.

Verification Query

Attachment 3 provides examples of TRACS Query Reports.

For more information on the TRACS queries and reports, the reviewer should refer to the Industry User Guide for TRACS Internet Applications posted on the TRACS website at: http://www.hud.gov/offices/hsg/mfh/trx/trxngde.cfm

3. EIV Reports

This section discusses how information contained in the EIV system can be used to prepare for the income and rent quality control review. The reviewer may examine EIV reports for the project or contract(s) to identify employment and income information that O/As may use at the time of recertification, possible income discrepancies, tenants who may possibly be receiving double subsidy as well as other data relative to household members. While EIV is not yet mandatory, if the O/A of the project being reviewed is using the EIV data at the time of recertification, the reviewer should examine EIV reports for the project and contract(s) being reviewed to identify specific income discrepancy related issues. Where discrepancies are noted, specific tenant families may be identified as candidates for the on-site tenant file sample review.

The reports will be used to:

Identify discrepancies in income reported by tenants.

Verify income reported by the tenant on the HUD-50059

Users may access income records for tenants participating in MF Housing’s rental assistance programs through EIV by:

Subsidy Contract

Project Number

Head of Household

For additional information and guidance on the EIV reports, the reviewer should refer to the EIV System User Manual Guide for Multifamily Housing Program

http://www.hud.gov/offices/hsg/mfh/trx/trxngde.cfm�



Users posted on the MF EIV website at: http://www.hud.gov/offices/hsg/mfh/rhiip/eiv/eivhome.cfm

a. Accessing EIV Reports

HUD staff that have been approved for EIV access can access the EIV reports by logging into Secure Systems using their H-ID and password and then selecting Enterprise Income Verification (EIV).

Other CAs, if they have been approved for EIV access, can access the EIV reports by logging into Secure Systems using their M-ID and password and selecting Enterprise Income Verification (EIV).

A link to the Secure Systems login screen is provided from the MF EIV website at:

http://www.hud.gov/offices/hsg/mfh/rhiip/eiv/eivhome.cfm

b. EIV Reports

The following reports may be used by CAs when preparing for and conducting the on-site monitoring review of O/As who are using EIV data at the time of recertification. O/As who choose to use EIV reports other than at the time of recertification must have policies and procedures in place for using the data to ensure all tenants are treated in a fair and nondiscriminatory manner.

1.

This report provides information on the head of household and each household member. The report displays the Identity Verification Status. The verification status’ are:

Summary Report

• Verified: Tenant SSN, Last Name and Date of Birth have been verified by the Social Security Administration (SSA).

• Not verified: Tenant record has not been sent to the SSA for verification.

• Failed: Tenant SSN, Last Name and Date of Birth failed verification by the SSA.

• Deceased: The SSA records show that the tenant with the SSN, Last Name and Date of Birth verified is deceased.

http://www.hud.gov/offices/hsg/mfh/rhiip/eiv/eivhome.cfm�




The reviewer may use this report to determine if there are tenants where the O/A needs to make corrections to data submitted to TRACS.

2.

The income report provides employment and income information on tenants participating in one of MF Housing’s rental assistance programs. The reviewer should use this report to ensure all income reported in EIV was used in determining the annual income of the tenant unless the tenant disputes the EIV employment and income information. In instances where the tenant disputes the EIV data, the O/A should have obtained third party verifications from income sources for determining the tenant’s income. There may also be instances where the income was for less than $200 per month ($2,400 per year) whereby the tenant would not have been required to report the income in accordance with his/her lease. The reviewer should make sure the owner has followed the requirements in Chapter 7, Paragraph 7-11.B of Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs, on processing interim recertifications.

Income Report

(See Notice H 2008-03, Enterprise Income Verification (EIV)), for more information on use of the EIV employment and income information. The notice is posted at: http://www.hud.gov/offices/adm/hudclips/notices/hsg/files/08-03HSGN.doc)

3.

This report provides employment information on tenants who have started new jobs. This information is updated monthly, and since most employers report information on new hires to their state within 30 days of the hire date, the new hire information will generally be in EIV within 60 days from when the tenant started the new job. The reviewer should use this report to ensure that O/As at the time of recertification are obtaining income information from tenants who may or may not be reporting they have started working and taking action to seek reimbursement from tenants of any overpayments in rental assistance due to unreporting of income. (See Part II, Paragraph E.2.f for information on how far back the O/A can go back to collect overpayments of assistance due to unreported income by a tenant(s).)

New Hires Report

Some O/As, although they are not required to be, may be proactive in outreaching to their tenants to report income changes between annual recertifications so that rent adjustments can be made in a timely manner, thus eliminating/reducing the amount of retroactive rent repayments. In these instances, the reviewer should review the O/A’s policies and procedures for

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using the new hire (W-4) information to ensure the O/A is using the information consistently for all tenants with new jobs reported.

4.

This report provides information on a possible discrepancy of $2,400 or more in the amount of wage, unemployment and SS/SSI benefit information reported by HHS and the SSA and the amount reported by the tenant at the time of recertification. The reviewer should use this report to ensure O/As are determining whether or not there was a valid discrepancy in income, taking actions to resolve the discrepancy and, when applicable, seeking reimbursement from the tenant(s) for overpayment of rental assistance.

Income Discrepancy Report

Reviewers are encouraged to view the EIV training session conducted on June 27 and 28, 2007 to assist them in understanding the report and how the O/A is to use the report for resolving discrepancies. This training is posted at: http://www.hud.gov/webcasts/archives/multifamily.cfm

Reviewers should also refer to the guidance provided in the document “Resolving Income Discrepancies Between Enterprise Income Verification (EIV) System Data and Tenant-Provided Income Information” posted on the Multifamily EIV website at: http://www.hud.gov/offices/hsg/mfh/rhiip/eiv/eivhome.cfm

Reviewers should review the information in Notice H 2008-03, Enterprise Income Verification (EIV), relating to the report and resolving income discrepancies. The notice is posted at: http://www.hud.gov/offices/adm/hudclips/notices/hsg/files/08-03HSGN.doc)

5.

This report allows the reviewer to query both the TRACS and the Public and Indian Housing Information Center (PIC) databases to identify individuals who may be receiving assistance at more than one location. The reviewer should use this report to determine if tenant(s) at the property being reviewed are receiving assistance at more than one location and, at the time of the on-site review, determine if the O/A is following-up to determine if the tenant is, or is not, receiving assistance at another location and taking appropriate action when it is determined a tenant is receiving assistance at more than one location.

Multiple Subsidy Report

http://www.hud.gov/webcasts/archives/multifamily.cfm�


http://www.hud.gov/offices/adm/hudclips/notices/hsg/files/08-03HSGN.doc�



6.

This report allows the O/A when processing an applicant to query both the TRACS and PIC databases to determine if the applicant and applicant household members are residing at another location whereby they could be receiving rental assistance. The reviewer will determine at the time of the review if the O/A is using this report and, if applicable, ensure that the O/A is using the query consistently for all applicants and applicant household members and whether or not the O/A is coordinating move-in/move-out dates with other O/As or Public Housing Agencies (PHAs) at the other location to prevent subsidy from being paid on behalf of the tenant(s) at both locations.

Existing Tenant Search

7.

The Identity Verification Report provides statistical information of the number of households and household members who were successfully verified by the SSA, who failed the SSA verification or failed the EIV pre-screening.

Identity Verification Report, Failed EIV Pre-Screening and Failed Verification Reports

The Failed EIV Pre-screening report provides a listing of individuals who failed the EIV pre-screening processes and a description of the reason(s) why the record failed. These individuals were not sent to the SSA for verification.

The Failed Verification Report provides a listing of household members who failed the SSA verification match due to invalid personal identifiers - incorrect SSN, last name or date of birth. The report also identifies household members reported by the SSA as being deceased.

The reviewer should use these reports to ensure at the time of the review that the O/A is resolving any discrepant tenant information reported so that matching can be completed with the National Directory of New Hires (NDNH) and the SSA data in order to reduce errors in rent and income determinations.

8.

This report provides information on tenants reported as being deceased by the SSA. The reviewer should use this report to ensure O/As are following up on verifying the accuracy of this data and taking the appropriate corrective action when it is determined the tenant is deceased, e.g., terminating assistance or tenancy.

Deceased Tenants Report

Attachment 10 provides examples of EIV Reports



4. OPIIS Integrated Risk Assessment (IRA) Score

OPIIS provides HUD staff with online access to loan and property specific as well as portfolio level information for HUD’s MF insured and assisted inventories. The system integrates annual financial statement data submitted through the Multifamily Financial Assessment Subsystem (FASS-MF), physical inspection data collected through the Physical Assessment Subsystem (PASS), and selected contract, loan and profile data from the iREMS for use in improving property performance.

HUD staff may use the OPIIS Integrated Risk Assessment score that is calculated using the financial, physical, loan payment status history, management review, and other data for an active project or contract to assist in identifying at-risk properties and to prioritize their workloads and review schedules. The IRA score for a project or contract is updated each time a component of the score is updated.

5. Reference Materials

Table 2 provides on-line reference materials that may be used in preparation for the on-site review. These materials include current income limit schedules and relevant HUD regulations, notices, manuals, handbooks, and guidebooks. .

TABLE 2 – ON LINE REFERENCE MATERIALS REFERENCE MATERIALS URL

Current Income Limits for the jurisdiction where the project is located are available on the HUD USER site:

http://www.huduser.org/datasets/il.html

The latest edition of HUD Regulations at Title 24 of the Code of Federal Regulations (CFR) is available on the Government Printing Office (GPO) Access page of the National Archives and Records Administration (NARA) site:

http://www.access.gpo.gov

Federal Register occupancy regulations published subsequent to the latest edition of CFR Title 24 are available on the GPO Access page of NARA:

http://www.access.gpo.gov

Current handbooks and notices related to occupancy are available at HUDCLIPS:

http://www.hudclips.org

Information about TRACS Internet applications: http://www.hud.gov/offices/hsg/mfh/trx/trxsum.cfm

EIV access information, user manuals, system updates

http://www.hud.gov/offices/hsg/mfh/rhiip/eiv/eivhome.cfm

Notice H 2008-03, Enterprise Income Verification (EIV)

http://www.hudclips.org

MF RHIIP tools for reduction of errors in rent and income determinations

http://www.hud.gov/offices/hsg/mfh/rhiip/mfhrhiip.cfm

OPIIS risk assessment score http://hudatwork.hud.gov/po/h/fb/oe/opiis/opiismenu.cfm

http://www.huduser.org/datasets/il.html�

http://www.access.gpo.gov/�

http://www.access.gpo.gov/�

http://www.hudclips.org/�

http://www.hud.gov/offices/hsg/mfh/trx/trxsum.cfm�



http://www.hud.gov/offices/hsg/mfh/rhiip/mfhrhiip.cfm�

http://hudatwork.hud.gov/po/h/fb/oe/opiis/opiismenu.cfm�



E. Conducting the On-Site Review

1. Tenant File Sample Selection

Tenant file records are the critical source documentation for income and rent determinations. While the tenant file sample review is the principal on-site information gathering activity, the file sample only offers a snapshot of O/A actions relative to a small number of tenants. The reviewer must examine the O/A’s operations, policies, and procedures in order to analyze and determine the complete picture of the income and rent determination process.

EXHIBIT 1 – MINIMUM FILE SAMPLE

If the Number of Units is: Minimum File Sample:

100 or fewer 5 files, plus 1 for each 10 units over 50

101 – 600 10 files, plus 1 for each 50 units or part of 50 over 100

601 – 2,000 20 files, plus 1 for each 100 units or part of 100 units over 700

Over 2,000 34 files, plus 1 for each 200 units or part of 200 units over 2,200

Please note: There is no maximum number of files to be sampled

Selection of specific tenant families to include in the file sample can be completed prior to the on-site review by using the information contained in the TRACS and EIV reports. If the reviewer prefers, the tenant families may be selected on site, or a combination of TRACS, EIV and on-site information may be used to select the file sample. During the review, the reviewer may find that certain specific issues or concerns arise (e.g., eligibility determinations, specific categories of income determinations, or specific types of deductions or high rate of EIV discrepancies) where a focused review of targeted families would be useful. The reviewer should adjust the tenant file sample, or add additional files, to meet the needs of the review. Once the file sample has been completed, the tenant files to be reviewed may be recorded on the Tenant File Sample, Attachment 2. The reviewer should use Exhibit 1 to determine the number of tenant files to be reviewed.

The file sample should include a broad representation of the resident profile at the property and include as many varied occupancy related issues and situations as possible. As noted in Section E, Question 19 of form HUD-9834, the minimum file sample should include review of files for new move-ins, recertifications, at least one Reject Applicant File and at least one Terminated/Move-out Tenant File. See Exhibit 2 for a list of the types of files the reviewer may consider when selecting the files to be included in the sample.



EXHIBIT 2 – FILE SAMPLE COMPOSITION

RESIDENT PROFILE COMPOSITION

New admissions: Families that have been admitted within the past 12 months (this should alert the reviewer to verify the tenant against the waiting list to ensure that the tenant(s) was in fact on the list)

Re-examinations: Families that have been participants for at least one year and have undergone at least one re-examination of income and family composition

Families where the head of household or spouse is elderly

Families where the head of household or spouse is disabled

Families with dependents

Families with students

Families with live-in aides

Families with large amounts of assets

Families with deductions for child care

Families with deductions for medical expenses

Families with zero income

Families paying minimum rent

Families for each bedroom size contained in the project

Families receiving utility reimbursements

Families for each type of subsidy available at the project

Current applicant files: A sample of applicants currently on the waiting list to assess the O/A’s process for handling applications (applications should always contain a date and time stamp)

Rejected applicant files: A sample of applicants rejected on the basis of income ineligibility to review O/A determinations of annual income and the use of appropriate income limits

Families with EIV income discrepancies

Terminated/move-out tenant files: A sample of former tenants where the O/A has terminated the tenancy or formally evicted the family, or where the family had given notice and moved out

2. Key Topics for Quality Control Monitoring of Rent and Income Determinations

A review must be completed using the Leasing and Occupancy portion of form HUD-9834 (Attachment 7).

Emphasis will be placed on the O/A’s responsibilities for income and rent determinations relating to:



Applicant Intake Procedures

Waiting List Management

Tenant Selection

Verification and Calculation of Income and Rent

Certification and Recertification Activities

Tenant File Review

Reviewers must be knowledgeable of all aspects of MF occupancy, particularly the information found in Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs, which provides detailed guidance for all of the topics listed above.

a. Applicant Intake Procedures

The O/A must establish a process for accepting applications from interested families and for gathering all information necessary to provide housing assistance for the family. Necessary information includes establishing family eligibility, family composition and characteristics, family income, and other relevant information. Additionally, O/As should include in their process the requirement that all applications are stamped with the date and time submitted. This is important for instances where two applicants apply but only one unit is available. Showing the date and time of receipt will validate the applicant’s placement on the waiting list as well as the timing of application submission.

The O/A must process applications to determine:

Eligibility for the project based on income, family composition, and other criteria

Suitability for the housing program the project serves based on age, disability, or other factors

Availability of an appropriately sized unit that matches a family’s requirements based on unit size needed, priority status, and other criteria

The O/A should establish procedures for conducting applicant interviews to ensure that the right questions are asked of the applicant. A thorough interview will identify all sources of income and deductions, and result in accurate income and rent determinations. During the interview, the O/A should stress to the applicant the importance of obtaining correct information for determining eligibility and the correct rent.



Two tools designed to assist the O/A with the application intake procedure are included in the Attachments to this Guide. Attachment 1, the Fact Sheets for Rent Determination by program type, provides the applicant with information on how rent is determined and outlines what the responsibilities of the O/A and the applicant are in the rent determination process. The applicable Fact Sheet should be provided to applicants prior to the application interview.

The Eligibility, Income, and Deductions Checklist, Attachment 4, is a sample checklist of the information needed to determine eligibility, income, and deductions that O/As may use to ensure that all necessary information is provided by the applicant. The O/A may want to have the applicant complete the checklist prior to the application interview and then review the checklist for completeness during the interview. The checklist should be signed by the applicant and retained with the application.

O/As should be made aware of the interview guide A Guide to Interviewing for Owners of HUD-Subsidized Multifamily Housing Programs, developed to provide concepts and tools that will aid interviewers in their work. While this guide was written for owners, the guide provides great interview tips that can also be beneficial to CAs when interviewing project staff during the MOR. The interview guide is posted on the MF RHIIP website at: http://www.hud.gov/offices/hsg/mfh/rhiip/casestudy/app_4.pdf

TABLE 3 – APPLICANT INTAKE PROCEDURES Reviewer Responsibilities Confirm that the O/A is requesting and receives sufficient information to

determine the applicant’s eligibility and that the information being requested is not in conflict with HUD requirements and regulations.

Review the application, application materials, rent and income checklists, and other relevant documentation to determine the O/A’s effectiveness in soliciting and identifying all relevant aspects of the family’s eligibility, income, and rent situation.

Determine if there is an established protocol for applicant interviews and that the protocol is being followed.

Questions to be Considered Are the O/A’s application materials clear and easy to understand for all

applicants? Does it appear that the O/A devotes sufficient time and resources overall to the

application process to ensure that accurate information is being obtained for determining eligibility?

Is there adequate staff to perform the applicant intake procedures?

b. Waiting List Management

Upon receipt of an application, the O/A must process the applicant for admission and then either offer the applicant a unit, if one is available, place the applicant on the waiting list or reject the applicant.

The policies and procedures for managing the waiting list must be outlined in the O/A’s Tenant Selection Plan. The waiting list should be organized and maintained in a manner that enables the O/A to quickly and efficiently identify available applicants and minimize vacancy loss and unit turnaround time. The O/A should periodically

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review and update the waiting list to ensure that the list includes only those families that are eligible, suitable, interested, and available for housing.

TABLE 4 – WAITING LIST MANAGEMENT Reviewer Responsibilities Interview staff responsible for the waiting list.

Review the O/A’s waiting list policy for consistency and validation against policies and regulations stated in Chapter 4 of HUD Handbook 4350.3 REV-1

Review the current waiting list for consistency and validation against new tenant move-ins.

Review the tenant rejection policy to ensure that it is in line with the rejection policies and notices regulations stated in HUD Handbook 4350.3 REV-1

Questions to be Considered Are the policies and procedures reasonable and consistent with HUD policies

and regulations? Does it appear that the O/A understands, is familiar with, and is following the

established written policies and procedures?

c. Tenant Selection Plan

The O/A must establish written policies and procedures for describing how tenants will be selected. These policies and procedures must ensure non-discrimination in the selection of tenants. Although HUD does not approve the O/A’s Tenant Selection Plan, the reviewer should review the O/A’s plan to ensure that waiting lists are properly maintained and that tenants are selected in a fair and nondiscriminatory manner. If the reviewer determines that a plan fails to comply with applicable civil rights requirements and other regulatory requirements, the O/A must modify the plan accordingly.

TABLE 5 – TENANT SELECTION PLAN

Reviewer Responsibilities Obtain a copy of the current Tenant Selection Plan.

Confirm that the plan’s policies and procedures do not conflict with HUD requirements as stated in Chapter 4 of HUD Handbook 4350.3 REV-1.

Questions to be Considered Are the policies and procedures reasonable and consistent with HUD policies?

Are the policies used consistent with the policies identified in the Tenant Selection Plan?

d. Verification and Calculation of Income and Rent

Given that the amount of rental assistance paid on behalf of the family is calculated using the family's annual income, less allowable deductions, it is critical that O/As verify and document in the family’s file all income, assets, expenses, deductions, family characteristics, and any other factors that affect family eligibility or level of assistance. Verification and documentation procedures should be developed and O/As should ensure that on-site property staff responsible for these functions is trained to understand and properly implement these procedures. Effective and efficient O/A staff performance in this area is fundamental to obtaining the correct information needed for accurate rent determination and assistance payments.



O/As should be encouraged to use the EIV system to validate employment and income reported by tenants. It is also strongly recommended that when reviewing an O/A who is using the EIV data at the time of recertification, CAs also use EIV reports when reviewing tenant files to assist in determining whether all income for the family was reported and included for determining eligibility and calculating rent and if there are a large number of income discrepancies reported.

Information received via third-party verification should be reviewed and interpreted and allowable deductions applied to determine the income used to calculate rent and subsidy. This is a detailed process and not simply a series of mathematical calculations.

There are four acceptable methods of verification. They are, in order of acceptability:

1. Upfront Income Verification (UIV) of SS/SSI benefits, wages, unemployment compensation benefits and new hire (W-4) data obtained through the EIV system at the time of recertification of tenants. This should be the first order of acceptability for O/As using EIV data or another form of UIV.

2. Third-party verification—written documentation sent directly to the O/A by a third party source is the preferred method of verification. The applicant or tenant should not hand-carry the verification to or from the third-party source. (See Chapter 5, Paragraph 5-13.B of Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs, for guidance on obtaining third party verifications.)

When third-party verification is not available O/As can use alternative forms of verification. The file must contain documentation stating why the third-party verification was not available. (See Chapter 5, Paragraph 5-19.E of Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs, for documentation requirements.)

3. Review of documents received from the applicant or tenant is acceptable when third-party verification is not possible or is delayed. (See Chapter 5, Paragraph 5-13.C of Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs, for information on review of documents.)

4. Family certification—a notarized statement from the family is acceptable only when information cannot be verified by another acceptable verification method. (See Chapter 5, Paragraph 5-13.D of Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs, for information on family certification requirements.)

O/As must determine a family’s annual income before the family is allowed to move in or begins receiving rental assistance and at least annually thereafter. The O/A determines a family's adjusted income used for rent and assistance calculation purposes by using the family’s annual income less any allowable deductions.



Annual income is made up of all monetary and non-monetary amounts that go to or are received for the benefit of the family and are not expressly excluded by regulation. The amounts that are included or excluded are specifically defined by HUD regulations. (See Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs, Chapter 5, Paragraphs 5-6 and 5-7 for a discussion on the elements of annual income and Exhibits 5-1 and 5-2 covering income inclusions and exclusions.)

Adjusted Income is the basis upon which the O/A calculates the family’s rent or total tenant payment (TTP). Adjusted income is the annual income amount as determined by the O/A, less allowable deductions that are defined by HUD regulations. (See Chapter 5, Section 2 of Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs, for information on determining adjusted income.)

TABLE 6 – VERIFICATION AND CALCULATION OF INCOME AND RENT Reviewer Responsibilities Interview the O/A’s staff responsible for verification of income and required

deductions and calculation of adjusted income and TTP. Determine if the staff is knowledgeable of and following the requirements and regulations covering the verification and rent determination processes.

Discuss the strengths and weaknesses of the O/A’s policies with staff, focusing on the provisions related to income, rent calculation, verification, documentation, and other related topics.

Confirm that the staff receives regular training on HUD policies, including rent determination policies and procedures.

Obtain copies of materials used by the O/A during the process of verification and calculation of annual and adjusted income. Review the materials for accuracy and compliance with HUD requirements. Materials may include:

• Standard verification letters and formats used for all income sources and deductions

• Standard release and authorization statements used for all income and deduction sources

• Worksheets, tables, guides, or other aids used by the O/A in income and rent calculations

Questions to be Considered Is the O/A’s staff knowledgeable of all aspects of the rent determination process

(i.e., calculations of deductions, income inclusions and exclusions, etc.)? If the O/A uses form letters or other standard procedures to contact income

verification sources, are they adequate and do they meet HUD requirements? Are there fundamental flaws in the verification and calculation of rent processes

that might lead to errors or inaccurate calculations?

e. Certification and Recertification Activities

O/As must examine and verify income, family composition, and other factors affecting continued occupancy at move-in or at the time the family begins receiving rental assistance and at least annually for every resident family. The annual recertification, which usually coincides with the anniversary of the date on which the resident first received assistance, requires the O/A to gather and verify information in accordance with the timeframes established by HUD. In addition to the annual recertifications, the O/A must also complete interim recertifications when the family



reports a change in income or family composition. The O/A must develop tracking and monitoring procedures to ensure that the required recertifications are initiated and completed on time.

The O/A should also establish procedures for conducting recertification interviews to ensure that the right questions are asked of the tenant family. These procedures may be the same as those used at the time of application processing. See Part II, F.2.a.

TABLE 7 – CERTIFICATION AND RECERTIFICATION ACTIVITIES

Reviewer Responsibilities

Review TRACS certification reports to ensure that the O/A is transmitting the tenant data and that the information is current for all residents.

Interview the O/A’s staff responsible for processing recertifications to determine if the staff is knowledgeable of, and following the requirements and regulations covering, the recertification process.

Review notification letters and other correspondence relating to the certification process for accuracy and compliance with HUD requirements.

Questions to be Considered

Is the staff familiar with the O/A’s established policies and procedures developed for the certification and recertification processes and are the policies and procedures being followed?

Does the O/A’s staff clearly understand the certification and recertification processes? Are all staff members using a consistent approach to conducting certifications and recertifications?

Are the certification and recertification materials clear and easy to understand for tenants?

Does the O/A devote sufficient time to the certification and recertification interview processes?

Does the O/A consider the interview as an effective information-gathering process (or merely a formality)?

f. Tenant File Review

The reviewer will examine the files selected for review (see Section II, E.1, Tenant File Sample Selection), following the Instructions for Completing the Tenant File Review Worksheet, (Attachment 6). The Tenant File Review Worksheet (Attachment 7-A) will assist the reviewer in answering the questions in the Leasing and Occupancy section of form HUD-9834.

Upon completion of the review of the tenant files, the reviewer will complete Section E, Question 19, Summary of Tenant File Review of form HUD-9834. In order to answer the questions in this section, the reviewer will need to complete an analysis of the information obtained from the review of the tenant files. Tenant file errors may be isolated to a specific file and others may indicate a pattern whereby a change is needed to the O/A’s policy or procedure used for income and rent determination.

The reviewer is not limited to a specific timeframe when reviewing documents in the tenant file and should review the original documents for the initial move-in year and all information relevant for the current year. When errors are found in a specific



tenant file, a full audit of that file should be conducted. When the audit reveals there was a discrepancy in the amount of income the tenant reported for previous years, e.g., unreported income, to resolve the discrepancy, the O/A is required to obtain verification of the income directly from the third party source. The consent forms signed by the tenant(s) limit how far back the O/A can request information in order to resolve the discrepancy and to determine any reimbursement to the O/A for underpayment of rent. The time limit is for the 5 year period prior to the date the consent forms for the current certification period were signed by the tenant(s) as these are the only forms in effect; all other consent forms signed for previous certification periods have expired.

• The HUD-9887-A consent form allowing the O/A to obtain third party verifications limits O/As from making inquiries into information that is older than 12 months unless he/she received inconsistent information and has reason to believe that the information that the tenant has supplied is incorrect. If this occurs then the O/A may obtain information within the last 5 years when the tenant has received assistance.

O/As must follow the guidance in Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs, Chapter 8, Section 4, Discrepancies, Errors, and Fraud, before taking any action against the tenant(s) to terminate, deny, suspend or reduce any assistance.

Rent calculation errors will be recorded on the Tenant File Error Summary (Attachment 8) and, if applicable, recorded in accordance with the interim error tracking requirements provided under a separate directive from this Guide.

TABLE 8 – TENANT FILE REVIEW

Reviewer Responsibilities

Be knowledgeable of all aspects of the occupancy functions outlined in HUD Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs.

Questions to be Considered Do the files include all of the required documentation for determining eligibility,

income, and rent (see Attachment 5, Required Tenant File Documentation)? Do the files include all third party/EIV reports supported by tenant provided

documentation, when applicable for verifying reported income? Is there a pattern of errors in the eligibility, rent, or income determinations? Do the files show that the O/A consistently uses some lesser form of

documentation (oral verification or signed declarations by the family) that may reflect a systemic weakness in the O/A’s verification process?

Do the files show evidence that the O/A uses a consistent policy for addressing falsified documentation or documentation that has been withheld by the family?

Is the documentation for similar information consistent from one tenant file to another?

Are recertification materials organized to provide an accurate and chronological history of events?



3. Monitoring O/A’s EIV Compliance

a. As part of the MOR, a review of the O/A’s compliance with accessing and using the EIV system will be conducted. The reviewer should review the following:

• Required EIV Coordinator and EIV User approval documents

• O/A’s policies and procedures for use of the EIV data

• Validity of tenant consent forms

• Use of EIV data

• Security of the EIV data and reports

• Retaining and destroying the EIV data and reports

NOTE: Since use of EIV is not yet mandatory for use by O/As, the reviewer will only conduct this review when the O/A being reviewed is using the EIV data at the time of recertification.

Until such time as use of the EIV system is made mandatory for O/As, CAs must not write a Finding or Observation when the O/A does not have access to EIV. The CA also must not provide EIV reports to the O/A requiring the O/A take action on information contained in an EIV report. O/As do not have the authority to have access to EIV data or use EIV information until they apply for, receive approval and are given access to the EIV system.

(1) Review of EIV Coordinator and EIV User Documents

(a) When identifying the documents that should be made available by the O/A during the review by completing and enclosing with the written confirmation letter the checklist in Addendum C of form HUD-9834 (Attachment 7-C), the reviewer should check the box beside “Other” and add:

• EIV Owner Approval Letters

• List of EIV Coordinator(s) and EIV User(s) who currently have access to the EIV system

• EIV Coordinator Access Authorization Form(s) (CAAFs)

• Security Awareness Training Questionnaire for EIV Coordinator form(s) for each approved EIV Coordinator

• EIV User Access Authorization Form(s) (UAAFs)



• Security Awareness Training Questionnaire for EIV User form(s) for each approved EIV User

(b) The reviewer will ensure that owner approval letters have been received for all projects or contracts assigned for access.

(c) The reviewer will make sure there is a current approved CAAF on file for each person designated by the owner as an EIV Coordinator and a current approved UAAF for each person designated by the EIV Coordinator as an EIV User who are on the list of individuals who currently have access to the EIV system. If there are CAAFs or UAAFs for individuals who either no longer need access to the system or who are no longer employed at the project being reviewed, the reviewer will make sure that the access has been expired or terminated for these individuals.

NOTE: There will not be Recertification CAAFs in existence for those EIV Coordinators who were recertified prior to December 21, 2007.

(d) The reviewer will check to see that there is a current completed and signed Security Awareness Training Questionnaire for each approved EIV Coordinator and each approved EIV User and that the Questionnaires were completed prior to approval and access being granted to the EIV system.

NOTE: There will not be Security Awareness Training Questionnaires for approvals or recertifications effective prior to May 12, 2008, the effective date of the requirement for completion of the Questionnaire.

(e) If the reviewer finds that the O/A does not have an owner approval letter for an assigned project or contract or the O/A does not have approved CAAFs, UAAFs, or Security Awareness Training Questionnaires on file, the reviewer should include this information on form HUD-9834, Section E, Leasing and Occupancy, sub-section 18, Tenant File Security, Question 18.b. Is access to tenant file information limited to only authorized staff? and/or Question 18.c Who is authorized to have access to tenant files? When this occurs, the reviewer will include this as an Observation (except for missing CAAFs for recertification prior to December 21, 2007) on the written report sent to the owner. The reviewer shall also notify the Director of the Housing Assistance Policy Division at HUD Headquarters by sending an email to the address below that contains the person’s name and M-ID and describes the missing authorization documentation for further review and possible removal of EIV access for any unauthorized EIV user.

[email protected]

(2) O/A’s Policies and Procedures

O/As need to have policies and procedures in place for using the EIV data at the time of recertification. O/As who choose to use the EIV data other than at the

mailto:[email protected]�



time of recertification must have policies and procedures in place to ensure that applicants and tenants are treated in a nondiscriminatory manner. For example, if the O/A uses the Existing Tenant Search for determining whether an applicant is receiving assistance, the O/A must have a policy in place to require that the search be used for all applicants. If an O/A uses the EIV data to check for income of new admissions 90 days after admission, the O/A must have a policy in place to require all new admissions be checked for unreported income. The reviewer must ensure that the O/A’s policies and procedures have been updated to include use of the EIV data.

If the reviewer finds that the O/A using EIV data has not implemented changes to his/her polices and procedures to incorporate use of the EIV data, the reviewer should include this information on form HUD-9834 in Section G, General Management Practices, Question c, How does the owner/agent implement HUD changes to policies and procedures? The reviewer will include this as a Finding on the written report and encourage the O/A to update his/her policies and procedures.

(3) Tenant Consent Forms

Before accessing EIV employment and income information on a tenant, the O/A must have a current signed consent form on file from the tenant. As part of the Tenant File Review the reviewer checks to see that there are current, signed HUD-9887(s), Notice and Consent for the Release of Information to HUD and to a PHA, consent forms signed by members of the tenant family who are at least 18 years of age and each family head and spouse regardless of age. (See Attachment 6, Question A.8)

When accessing the EIV system, O/As affirm that there is a valid form HUD-9887 on file for tenants whose employment and income information they are accessing and CAs (PBCAs and TCAs) affirm they will verify that O/As have a valid form HUD-9887 on file for tenants whose employment and income they have accessed when preparing for the MOR. HUD staff must follow the same requirements affirmed to by the PBCAs and TCAs.

If the reviewer finds that the O/A does not have current, signed forms HUD-9887 in the tenant files, this will be recorded on the Tenant File Review Worksheet, Section A, Question 8, Have the HUD-9887/9887-A Consent Forms been signed by head, spouse, co-head regardless of age and family members at least 18 years or age? and should also be noted on the form HUD-9834, Section E, Leasing and Occupancy, sub-section 19, Summary of Tenant File Review, Question a.ii, Do the files contain all documentation as required in Handbook 4350.3 REV-1?

When this occurs the reviewer will include this as a Finding on the written report sent to the owner identifying a TCD for curing this deficiency.



(4) Use of EIV data

As part of the tenant file review the CA will monitor the O/A’s use of EIV data at

the time of recertification of the tenant(s)/household(s) income. EIV data may be used for validating a tenant’s employment source and using tenant provided documentation, e.g., 4-6 most recent check stubs, for determining the tenant’s income and may also be used for determining a tenant(s) income from SS/SSI benefits. The reviewer will check the tenant files to ensure they contain the applicable EIV reports and supporting documentation and any documentation to support EIV discrepancy resolutions. The reviewer will also determine whether or not the O/A is properly verifying income disputed by the tenant and resolving income discrepancies in accordance with Chapters 5 and 8 of Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs, and Notice H 2008-03, Enterprise Income Discrepancies. Both the Handbook and the Notice are posted at: www.hudclips.org.

If the reviewer finds that the O/A is not verifying income, determining rents and resolving income discrepancies in accordance with the Handbook and Notice requirements, this should be noted on the form HUD-9834, Addendum A, Tenant File Review worksheet and Section E, Leasing and Occupancy, sub-section 19, Summary of Tenant File Review, Question d, Certification/Recertification Activities, and written as a Finding(s) on the written report to the owner.

(5) Security of the EIV data and reports

Personal information contained in the EIV system, e.g., tenant(s) name, date of birth, social security number, are covered by the Privacy Act. Therefore, it is important that the O/A have security measures in place to protect access to the tenant files limiting/restricting access to authorized staff only and that the EIV information and reports are only accessed and used by persons who have a need to know or use the information for recertification purposes.

HUD only has authorization to disclose EIV data to O/As. The EIV data and reports cannot be used to certify/recertify tenants under the Low Income Housing Tax Credit (LIHTC) program or the Rural Housing Services (RHS) Section 515 program and the data may not be disclosed to State agency or RHS staff monitoring the LIHTC and Section 515 programs.

If the reviewer finds that the O/A is not maintaining reports in a secure place and restricting use of the EIV data and reports to those O/A staff members requiring access to the data, the reviewer should note this on the form HUD-9834, Section E, Leasing and Occupancy, Question 18.a., Are the files locked and secured in a confidential manner? and Question 18.c, Is access to tenant file information limited to only authorized staff? and write-up a Finding(s) on the written report



to the owner. Wrongful disclosure or use of the EIV data can result in civil and criminal penalties.

The reviewer may wish to use the EIV Security Checklist, Attachment 11, to assist in determining the O/A’s compliance with security of the EIV data and reports.

(6) Retention of EIV Data and Reports

Retention of EIV data:

• Social Security benefit report – term of tenancy plus 3 years

• NDNH New hires (W-4), wage, unemployment compensation – 2 years

• Tenant has both SS/SSI benefits and employment or wage information – 2 years

• O/As have the discretion where they can separate the NDNH from the household summary and SS/SSI benefit information to destroy the NDNH information and retain the household summary and SS/SSI benefit information for the term of tenancy plus 3 years.

• All documentation received from the tenant to supplement the EIV data for use in verifying his/her income plus any third party verifications received must continue to be retained for the term of tenancy plus 3 years.

• The O/A should document the file (including the date) when NDNH data used for verification purposes is destroyed.

If the reviewer finds that the O/A is not following HUD’s record retention requirements, this should be noted on the form HUD-9834, Section E, Leasing and Occupancy, sub-section 18, Tenant File Security, Question d, Is the owner/agent maintaining tenant files according to HUD’s document retention requirement? and Question e, Is the owner/agent properly disposing of tenant records (shred, burn, pulverize, etc.)?and should be written-up as a Finding(s) on the written report to the owner.

b. Documenting EIV Compliance Observations and Findings

EIV compliance Observations will be included on the report to the owner noting that failure to correct deficiencies noted in the Observation may lead to Findings on future reports. EIV Findings will be documented in accordance with the instructions in F.2 for recording and documenting income and rent determination errors and findings.



F. Post-Review Activities and Follow-up

1. Introduction to Preparing and Issuing a Report

The purpose of the MOR Report is to provide the owner of the project with written notification of the reviewer’s conclusions. These conclusions regarding the quality of the O/A’s calculations and determinations of annual income and rent, performance problems or issues related to income and rent determinations, and corrective actions necessary to resolve income and rent problems are an important part of the review report. Therefore, it is imperative that the findings, causes, corrective actions, errors, and other conclusions are clear, persuasive, and well documented. This final report is HUD’s mechanism for ensuring that all deficiencies are corrected and errors are reduced.

2. Recording and Documenting Income and Rent Determination Errors and Findings

The reviewer should use some of the attachments included with this Guide to record the results of the rent and income determination review. The Tenant File Review Worksheet (Attachment 7-A) is used to document the results of the review for each tenant file included in the review sample. The Tenant File Error Summary form (Attachment 8) is used to record differences between the O/A’s income and rent determinations and the reviewer’s income and rent determinations for each tenant file reviewed. It is important to document all errors, discrepancies, and findings during the review to provide support for the conclusions reported to the owner and to assist the reviewer in developing trends that indicate a more serious issue or finding.

The review report should include a detailed list of errors and findings, as well as information needed to enable the O/A to identify the error or finding, understand the required corrective action, and know what documentation or completed corrective actions must be provided to the reviewer. Documentation may include copies of signed, recalculated tenant certifications, copies of vouchers where corrective adjustments were submitted to HUD, or evidence that a tenant was repaid for overpayment of rent. The report will provide the owner with a timeframe for completing the corrective action and responding to the report.

Findings are distinguished from the specific errors noted in the tenant file sample review. Tenant file errors may apply only to specific files. However, tenant file errors may also indicate a pattern of deficient O/A performance in one or more areas of income and rent determination or process. This pattern of errors may become a finding if the pattern indicates a systemic problem.

The reviewer will determine whether an error is an isolated occurrence or is a systemic error in the areas of data collection, data verification, data recording, or rent calculation. A pattern of similar errors indicates that action other than simply correcting the error is needed. The reviewer will require that the O/A examine every



tenant file, implement a required change in procedure, and provide the reviewer documentation of the corrective actions taken.

If systemic errors or findings are discovered during the review, the review report must include a detailed list of errors and findings. All findings must be well supported. The report should identify the condition, error in procedure, or program violation; the criteria, HUD policy, or regulation breached; and the specific corrective action.

a. Identifying the Condition

The reviewer will describe what the O/A is doing incorrectly. Some examples of this are:

The O/A does not require all adult members of a household to sign the Notice and Consent for the Release of Information (Form HUD-9887).

The O/A does not attempt to verify tenant information with third party sources.

The O/A does not use the information received from verification sources when completing certifications.

If clarification is needed, explain the cause—why the condition occurred—and the effect—what happens because of the condition—when describing the condition. For example, the reviewer may note that the O/A does not re-certify tenants in a timely manner, resulting in incorrect rents being paid by tenants and incorrect subsidies being paid by HUD.

b. Identifying the Criteria

The reviewer will cite the regulatory or statutory requirement that was not followed or the exact wording of any HUD regulatory agreement, assistance contract, handbook, memorandum, or notice that was breached. Examples of wording to use when HUD’s laws, regulations, legal documents, or guidance are not followed are shown below:

HUD Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs, Chapter 3, Paragraph 3.11, states: “All members of an applicant or tenant family who are at least 18 years of age and each family head and spouse regardless of age must sign the HUD-required consent forms (Form HUD-9887, Notice and Consent for the Release of Information to HUD and to a PHA, and Form HUD-9887-A, Applicant’s/Tenant’s Consent to the Release of Information Verification by Owners of Information Supplied by Individuals Who Apply for Housing Assistance).”

The Housing Assistance Payments (HAP) contract at Section 1.3(b) states: “Government Assistance (1) The Government hereby agrees to make housing



assistance payments on behalf of Families for the Contract Units, to enable such Families to lease Decent, Safe, and Sanitary housing pursuant to Section 8 of the Act. Such housing assistance payments shall equal the difference between the Contract Rent for units leased by Families and the portion of such rents payable by Families determined by the owner in accordance with schedules and criteria established by the Government.”

The Code of Federal Regulations, at 24 CFR Part 5.655, states: “Tenant Selection Plan. The owner must adopt a written tenant selection plan in accordance with HUD requirements.”

c. Specifying the Corrective Action Required

The reviewer will detail corrective actions for all errors and findings. Be specific when reporting what the owner must do to be compliant with established HUD criteria. Also, identify a timeframe for addressing each error/finding. Some examples of required corrective actions are:

Within 30 days of the date of the issuance of this report, the O/A must utilize the required consent and release forms for all tenants, verify information with third party sources, and recalculate the rent paid by the tenant and the subsidy paid by the Department. Any overpayments of subsidy due to improper O/A practices will be repaid to the Department on the next voucher.

Within 30 days of the date of the issuance of this report, the O/A will provide tenants with a copy of the HUD Fact Sheet for Determining Rent and the Resident Rights and Responsibilities brochure.

The final report will be completed and transmitted by the reviewer to the owner as quickly as possible after the on-site review. As a rule, reports should be transmitted to the owner no later than 30 calendar days after the conclusion of the review. The report will be sent to the owner with a cover letter that provides a context of the report, HUD’s expectations for resolution of the issues contained in the report, and the timeframe for responding to the report.

3. Follow-ups and Resolutions of Income and Rent Errors and Findings

Preparation for follow-up activities begins at the introductory meeting with the O/A. At this meeting, the reviewer will explain the methods to be used when conducting the review and the requirement to respond to concerns expressed in the review report. The reviewer will explain that the owner will receive a written report that provides details of the concerns, errors, and findings revealed during the review. The reviewer will also explain that the owner will have 30 days to respond to the report with a written corrective action plan or with documentation that the conclusions presented in the report are in error.

The final report will outline corrective actions for the O/A to complete and specific deadlines to meet in order to address the income and rent discrepancies. The owner



will address the identified corrective actions in the correction action plan submitted to the CA for the property. The response to the review from the owner must be in writing. The owner may respond to the findings and conclusions in one of the following ways:

Agreeing with the errors identified and submitting a written corrective action plan

Agreeing with some of the errors identified, submitting a written plan of correction for these errors, and appealing the remaining errors in writing with supporting documentation

Appealing the entire error write-up with a written appeal supported by documentation

The reviewer will monitor the owner’s progress in resolving the income and rent findings and correcting specific income and rent tenant file errors identified in the report. If necessary, the correction of errors and findings will be confirmed through a follow-up review of a different sample of tenant files.

Follow-up by the reviewer and resolution of the findings and errors includes:

Tracking owner responses to the report issues

Tracking owner progress in resolving the discrepancies

Analyzing any owner difficulties in addressing the issues

Taking appropriate actions by providing technical assistance and/or imposing sanctions to ensure that all corrective actions are completed

Where possible, the reviewer and the owner should attempt to quantify the dollar amount of the owner’s corrective actions and efforts, whether it is an underpayment or overpayment of rent or subsidy. In the final report, the Tenant File Error Summary should identify the dollar amount associated with each discrepancy for every tenant family in the tenant file sample. Owner responses to these errors should indicate the specific dollar amount adjusted for each family. The owner, not the tenant, will repay the Department any overpayment of subsidy caused by errors in calculation by the owner or failure of the owner to use information and documentation provided by the tenant.

In cases where the owner does not resolve the income and rent issues identified in the report or does not take the necessary corrective actions, the reviewer should examine the reasons for failing to do so and take appropriate actions. PBCAs and TCAs will refer the owner to HUD staff for action. HUD staff will take action where HUD is the CA.



Errors that are not addressed within 30 days of the issuance of the report, either through corrective action or an acceptable corrective action plan, become findings. HUD staff will take appropriate actions to address unresolved findings, including, but not limited to:

Flagging all principles in the Active Partners Performance System (APPS)

Removal of the management agent

Adjustment of the assistance payment to supported levels

Abatement or termination of the assistance contract

Elective referral to the Enforcement Center’s Legal Services Division for sanctions

Limited denial of participation (LDP)

Suspension

Debarment

Transfer of physical assets

Referral to the HUD Office of Inspector General (OIG)

The reviewer will develop a tracking system to remind them when the 30 days has elapsed. If no response is received, or an unacceptable response is received within the 30 day period, a phone call to the owner is optional. However, sanctions should be imposed on day 31 if an acceptable response to the errors/findings explained in the review report has not been received.



PART III. TRACKING ERRORS

MF Housing has established an initiative for the development of an Error Tracking Log to be incorporated as part of the TRACS for tracking the specific dollar impact of income and rent discrepancies and the corresponding resolution. The Error Tracking Log as part of the TRACS is not expected to be deployed until FY 2010. Therefore, until such time as the Error Tracking Log as part of the TRACS is deployed and included in this Guide, CAs will follow the interim reporting requirements issued under a separate directive from this Guide.



ATTACHMENT 1 – FACT SHEETS ON “HOW YOUR RENT IS DETERMINED”

ATTACHMENT 1-A BELOW MARKET INTEREST RATE .......................................................... 1 ATTACHMENT 1-B PROJECT-BASED SECTION 8 ..................................................................... 5 ATTACHMENT 1-C RENTAL ASSISTANCE PAYMENTS ........................................................... 9 ATTACHMENT 1-D RENT SUPPLEMENT ................................................................................. 13 ATTACHMENT 1-E SECTION 202/162 – PROJECT ASSISTANCE CONTRACT (PAC) ............ 17 SECTION 202/811 – PROJECT RENTAL ASSISTANCE CONTRACT (PRAC) ...................... 17 ATTACHMENT 1-F SECTION 236 ............................................................................................... 21

September 2008 Attachment 1-A. BMIR Fact Sheet

RHIIP Rent & Income Determination Quality Control Monitoring Guide For Multifamily Housing Programs September 2008

1-1

FACT SHEET For HUD ASSISTED RESIDENTS

Below Market Interest Rate

(BMIR)

“HOW YOUR RENT IS

DETERMINED”

Office of Housing

** June 2007**

This Fact Sheet is a general guide to inform the Owner/Management Agents (O/A) and HUD-assisted residents of the responsibilities and rights regarding income disclosure and verification.

Why Determining Income and Rent Correctly is Important

Department of Housing and Urban Development studies show that many resident families pay incorrect rent. The main causes of this problem are: • Under-reporting of income by resident families, and • O/As not granting exclusions and deductions to

which resident families are entitled. O/As and residents all have a responsibility in ensuring that the correct rent is paid.

O/As’ Responsibilities: • Obtain accurate income information • Verify resident income • Ensure residents receive the exclusions to which

they are entitled • Accurately calculate Tenant Rent • Provide tenants a copy of lease agreement and

income and rent determinations • Recalculate rent when changes in family

composition are reported • Recalculate rent when resident income decreases • Recalculate rent when resident income increases by

$200 or more per month • Provide information on O/A policies upon request • Notify residents of any changes in requirements or

practices for reporting income or determining rent Residents’ Responsibilities: • Provide accurate family composition information • Report all income • Keep copies of papers, forms, and receipts which

document income and expenses • Report changes in family composition and income

occurring between annual recertifications • Sign consent forms for income verification • Follow lease requirements and house rules Income Determinations A family’s anticipated gross income determines not only eligibility, but also determines the rent a family will pay. The anticipated income, subject to exclusions the family will receive during the next twelve (12) months, is used to determine the family’s rent. What Is Annual Income? Gross Income – Income Exclusions = Annual Income

http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4350.3/43503x14AHSGH.doc�



1-2

Determining Tenant Rent Below Market Interest Rate (BMIR) Rent Formula: • At move-in or initial occupancy, the family pays the

contract rent • At recertification, they continue to pay the same rent

unless their income is equal to or higher than 110% of the BMIR income limit. If the income has risen to 110% of the BMIR income limit, they pay the higher of the BMIR Market Rent or the amount they now pay.

Income and Assets HUD assisted residents are required to report all income from all sources to the Owner or Agent (O/A). Exclusions to income are part of the tenant rent process. When determining the amount of income from assets to be included in annual income, the actual income derived from the assets is included except when the cash value of all of the assets is in excess of $5,000, then the amount included in annual income is the higher of 2% of the total assets or the actual income derived from the assets. Annual Income Includes: • Full amount (before payroll deductions) of wages

and salaries, overtime pay, commissions, fees, tips and bonuses and other compensation for personal services

• Net income from the operation of a business or profession

• Interest, dividends and other net income of any kind from real or personal property (See Assets Include/Assets Do Not Include below)

• Full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts, including lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount **(except for deferred periodic payments of supplemental security income and social security benefits, see Exclusions from Annual Income, below)**

• Payments in lieu of earnings, such as unemployment and disability compensation, worker’s compensation and severance pay **(except for lump-sum additions

to family assets, see Exclusions from Annual Income, below)**

• Welfare assistance • Periodic and determinable allowances, such as

alimony and child support payments and regular contributions or gifts received from organizations or from persons not residing in the dwelling

• All regular pay, special pay and allowances of a member of the Armed Forces (except for special pay for exposure to hostile fire)

• **For Section 8 programs only, any financial assistance, in excess of amounts received for tuition, that an individual receives under the Higher Education Act of 1965, shall be considered income to that individual, except that financial assistance is not considered annual income for persons over the age of 23 with dependent children or if a student is living with his or her parents who are receiving section 8 assistance. For the purpose of this paragraph, “financial assistance” does not include loan proceeds for the purpose of determining income**

Assets Include: • Stocks, bonds, Treasury bills, certificates of deposit,

money market accounts • Individual retirement and Keogh accounts • Retirement and pension funds • Cash held in savings and checking accounts, safe

deposit boxes, homes, etc. • Cash value of whole life insurance policies available

to the individual before death • Equity in rental property and other capital

investments • Personal property held as an investment • Lump sum receipts or one-time receipts • Mortgage or deed of trust held by an applicant • Assets disposed of for less than fair market value. Assets Do Not Include: • Necessary personal property (clothing, furniture,

cars, wedding ring, vehicles specially equipped for persons with disabilities)

• Interests in Indian trust land • Term life insurance policies • Equity in the cooperative unit in which the family

lives • Assets that are part of an active business • Assets that are not effectively owned by the



1-3

applicant or are held in an individual’s name but: • The assets and any income they earn accrue to

the benefit of someone else who is not a member of the household, and

• that the other person is responsible for income taxes incurred on income generated by the assets

• Assets that are not accessible to the applicant and provide no income to the applicant (Example: A battered spouse owns a house with her husband. Due to the domestic situation, she receives no income from the asset and cannot convert the asset to cash.)

• Assets disposed of for less than fair market value as a result of: • Foreclosure • Bankruptcy • Divorce or separation agreement if the applicant

or resident receives important consideration not necessarily in dollars.

Exclusions from Annual Income: • Income from the employment of children (including

foster children) under the age of 18 • Payment received for the care of foster children or

foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone

• Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker’s compensation), capital gains and settlement for personal or property losses

• Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member

• Income of a live-in aide • **Subject to the inclusion of income for the Section

8 program for students who are enrolled in an institution of higher education under Annual Income Includes, above,** the full amount of student financial assistance either paid directly to the student or to the educational institution

• The special pay to a family member serving in the Armed Forces who is exposed to hostile fire

• Amounts received under training programs funded by HUD

• Amounts received by a person with a disability that are disregarded for a limited time for purposes of

Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS)

• Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program

• Resident service stipend (not to exceed $200 per month)

• Incremental earnings and benefits resulting to any family member from participation in qualifying State or local employment training programs and training of a family member as resident management staff

• Temporary, non-recurring or sporadic income (including gifts)

• Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era

• Earnings in excess of $480 for each full time student 18 years old or older (excluding head of household, co-head or spouse)

• Adoption assistance payments in excess of $480 per adopted child

• Deferred periodic payments of supplemental security income and social security benefits that are received in a lump sum amount or in prospective monthly amounts

• Amounts received by the family in the form of refunds or rebates under State of local law for property taxes paid on the dwelling unit

• Amounts paid by a State agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home

Federally Mandated Exclusions: • Value of the allotment provided to an eligible

household under the Food Stamp Act of 1977 • Payments to Volunteers under the Domestic Volunteer Services Act of 1973 • Payments received under the Alaska Native Claims Settlement Act • Income derived from certain submarginal land of the

US that is held in trust for certain Indian Tribes



1-4

• Payments or allowances made under the Department of Health and Human Services’ Low-Income Home Energy Assistance Program

• Payments received under programs funded in whole or in part under the Job Training Partnership Act

• Income derived from the disposition of funds to the Grand River Band of Ottawa Indians

• The first $2000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the US. Claims Court, the interests of individual Indians in trust or restricted lands, including the first $2000 per year of income received by individual Indians from funds derived from interests held in such trust or restricted lands

• Amounts of scholarships funded under Title IV of the Higher Education Act of 1965, including awards under the Federal work-study program or under the Bureau of Indian Affairs student assistance programs

• Payments received from programs funded under Title V of the Older Americans Act of 1985

• Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in In Re Agent-product liability litigation

• Payments received under the Maine Indian Claims Settlement Act of 1980

• The value of any child care provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act of 1990

• Earned income tax credit (EITC) refund payments on or after January 1, 1991

• Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation

• Allowance, earnings and payments to AmeriCorps participants under the National and Community Service Act of 1990

• Any allowance paid under the provisions of 38U.S.C. 1805 to a child suffering from spina bifida who is the child of a Vietnam veteran

• Any amount of crime victim compensation (under the Victims of Crime Act) received through crime victim assistance (or payment or reimbursement of the cost of such assistance) as determined under the Victims of Crime Act because of the commission of

a crime against the applicant under the Victims of Crime Act

• Allowances, earnings and payments to individuals participating under the Workforce Investment Act of 1998.

Reference Materials

Regulations: • General HUD Program Requirements; 24 CFR Part

5

Handbook: • 4350.3, Occupancy Requirements of Subsidized

Multifamily Housing Programs

Notices: • “Federally Mandated Exclusions” Notice 66 FR

4669, April 20, 2001

For More Information: Find out more about HUD’s programs on HUD’s Internet homepage at http://www.hud.gov

September 2008 Attachment 1-B. Project-Based Section 8 Fact Sheet


1-5


Project-Based Section 8

“HOW YOUR RENT IS

DETERMINED”

Office of Housing

**June 2007**




which resident families are entitled. O/As and residents all have a responsibility in ensuring that the correct rent is paid. O/As’ Responsibilities: • Obtain accurate income information • Verify resident income • Ensure residents receive the exclusions and

deductions to which they are entitled • Accurately calculate Tenant Rent

• Provide tenants a copy of lease agreement and income and rent determinations Recalculate rent when changes in family composition are reported

• Recalculate rent when resident income decreases • Recalculate rent when resident income increases by

$200 or more per month • Recalculate rent every 90 days when resident claims

minimum rent hardship exemption • Provide information on O/A policies upon request • Notify residents of any changes in requirements or

practices for reporting income or determining rent

Residents’ Responsibilities: • Provide accurate family composition information • Report all income • Keep copies of papers, forms, and receipts which


occurring between annual recertifications • Sign consent forms for income verification • Follow lease requirements and house rules

Income Determinations

A family’s anticipated gross income determines not only eligibility for assistance, but also determines the rent a family will pay and the subsidy required. The anticipated income, subject to exclusions and deductions the family will receive during the next twelve (12) months, is used to determine the family’s rent.

What Is Annual Income?

Gross Income – Income Exclusions = Annual Income

What Is Adjusted Income?

Annual Income – Deductions = Adjusted Income

Determining Tenant Rent Project-Based Section 8 Rent Formula: The rent a family will pay is the highest of the following amounts: • 30% of the family’s monthly adjusted income • 10% of the family’s monthly income • Welfare rent or welfare payment from agency to assist family in paying housing costs.

OR • $25.00 Minimum Rent

http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4350.3/43503x14BHSGH.doc�



1-6

Income and Assets HUD assisted residents are required to report all income from all sources to the Owner or Agent (O/A). Exclusions to income and deductions are part of the tenant rent process. When determining the amount of income from assets to be included in annual income, the actual income derived from the assets is included except when the cash value of all of the assets is in excess of $5,000, then the amount included in annual income is the higher of 2% of the total assets or the actual income derived from the assets. Annual Income Includes: • Full amount (before payroll deductions) of

wages and salaries, overtime pay, commissions, fees, tips and bonuses and other compensation for personal services




• Payments in lieu of earnings, such as unemployment and disability compensation, worker’s compensation and severance pay **(except for lump-sum additions to family assets, see Exclusions from Annual Income, below)**




• **For Section 8 programs only, any financial assistance, in excess of amounts received for tuition, that an individual receives under the Higher Education Act of 1965, shall be considered income to that individual, except that financial assistance is not considered annual income for persons over the age of 23 with dependent children or if a student is living with his or her parents who are receiving section 8 assistance. For the purpose of this paragraph, “financial assistance” does not include loan proceeds for the purpose of determining income.**













1-7

• that other person is responsible for income taxes incurred on income generated by the assets










8 program for students who are enrolled in an institution of higher education under Annual Income Includes, above, ** the full amount of student financial assistance either paid directly to the student or to the educational institution



• Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS)

• Amounts received by a participant in other publicly assisted programs which are specifically for or in

reimbursement of out-of-pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program











household under the Food Stamp Act of 1977 • Payments to Volunteers under the Domestic Volunteer Services Act of 1973 • Payments received under the Alaska Native

Claims Settlement Act • Income derived from certain sub-marginal land of

the US that is held in trust for certain Indian Tribes • Payments or allowances made under the Department

of Health and Human Services’ Low-Income Home Energy Assistance Program




1-8












• Any amount of crime victim compensation (under the Victims of Crime Act) received through crime victim assistance (or payment or reimbursement of the cost of such assistance) as determined under the Victims of Crime Act because of the commission of a crime against the applicant under the Victims of Crime Act


Deductions:

• $480 for each dependent including full time students or persons with a disability

• $400 for any elderly family or disabled family • Unreimbursed medical expenses of any elderly

family or disabled family that total more than 3% of Annual Income

• Unreimbursed reasonable attendant care and auxiliary apparatus expenses for disabled family member(s) to allow family member(s) to work that total more than 3% of Annual Income

• If an elderly family has both unreimbursed medical expenses and disability assistance expenses, the family’s 3% of income expenditure is applied only one time.

• Any reasonable child care expenses for children under age 13 necessary to enable a member of the family to be employed or to further his or her education.

Reference Materials

Legislation: • Quality Housing and Work Responsibility Act

of 1998, Public Law 105-276, 112 Stat. 2518 which amended the United States Housing Act of 1937, 42 USC 2437, et seq.

Regulations: • General HUD Program Requirements; 24 CFR Part

5

Handbook: • 4350.3, Occupancy Requirements of Subsidized

Multifamily Housing Programs

Notices: “Federally Mandated Exclusions” Notice 66 FR 4669, April 20, 2001

For More Information: Find out more about HUD’s programs on HUD’s Internet homepage at http://www.hud.gov

http://www.hud.gov/�

September 2008 Attachment 1-C. RAP Fact Sheet


1-9


RENTAL ASSISTANCE

PAYMENTS (RAP)

“HOW YOUR RENT IS DETERMINED”

Office of Housing

**June 2007**




which resident families are entitled. O/As and residents all have a responsibility in ensuring that the correct rent is paid. O/As’ Responsibilities: • Obtain accurate income information • Verify resident income

• Ensure residents receive the exclusions and deductions to which they are entitled

• Accurately calculate Tenant Rent • Provide tenants a copy of lease agreement and






occurring between annual recertifications • Sign consent forms for income verification • Follow lease requirements and house rules Income Determinations A family’s anticipated gross income determines not only eligibility for assistance, but also determines the rent a family will pay and the subsidy required. The anticipated income, subject to exclusions and deductions the family will receive during the next twelve (12) months, is used to determine the family’s rent. What is Annual Income? Gross Income – Income Exclusions = Annual Income What is Adjusted Income? Annual Income – Deductions = Adjusted Income Determining Tenant Rent Rental Assistance Payment (RAP) Rent Formula: The rent a family will pay is the highest of the following amounts: • 30% of the family’s monthly adjusted income

http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4350.3/43503x14CHSGH.doc�

http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4350.3/43503x14CHSGH.doc�



1-10

• 10% of the family’s monthly income • Welfare rent or welfare payment from agency to assist family in paying housing costs. • Note: An owner may admit an applicant to the RAP

program only if the Total Tenant Payment is less than the gross rent for the unit.

Income and Assets HUD assisted residents are required to report all income from all sources to the Owner or Agent (O/A). Exclusions to income and deductions are part of the tenant rent process. When determining the amount of income from assets to be included in annual income, the actual income derived from the assets is included except when the cash value of all of the assets is in excess of $5,000, then the amount included in annual income is the higher of 2% of the total assets or the actual income derived from the assets. Annual Income Includes: • Full amount (before payroll deductions) of wages






• Welfare assistance

• Periodic and determinable allowances, such as alimony and child support payments and regular contributions or gifts received from organizations or from persons not residing in the dwelling












the benefit of someone else who is not a member



1-11

of the household, and • that other person is responsible for income taxes

incurred on income generated by the assets • Assets that are not accessible to the applicant and

provide no income to the applicant (Example: A battered spouse owns a house with her husband. Due to the domestic situation, she receives no income from the asset and cannot convert the asset to cash.)









8 program for students who are enrolled in an institution of higher education under Annual Income Includes, above,** the full amount of student financial assistance either paid directly to the student or to the educational institution
















US that is held in trust for certain Indian Tribes • Payments or allowances made under the Department




1-12















Deductions: • $480 for each dependent including full time students

or persons with a disability • $400 for any elderly family or disabled family • Unreimbursed medical expenses of any elderly



• If an elderly family has both unreimbursed medical expenses and disability assistance expenses, the family’s 3% of income expenditure is applied only one time


Reference Materials Regulations: • General HUD Program Requirements; 24 CFR Part

5 Handbook: • 4350.3, Occupancy Requirements of Subsidized

Multifamily Housing Programs Notices: • “Federally Mandated Exclusions” Notice 66 FR

4669, April 20, 2001 For More Information: Find out more about HUD’s programs on HUD’s Internet homepage at http://www.hud.gov

September 2008 Attachment 1-D. Rent Supplement Fact Sheet


1-13


Rent Supplement

“HOW YOUR RENT IS

DETERMINED”

Office of Housing

**June 2007**




which resident families are entitled. O/As and residents all have a responsibility in ensuring that the correct rent is paid.

O/As’ Responsibilities: • Obtain accurate income information • Verify resident income • Ensure residents receive the exclusions and

deductions to which they are entitled • Accurately calculate Tenant Rent • Provide tenants a copy of lease agreement and

income and rent determinations Recalculate rent when changes in family composition are reported

• Recalculate rent when resident income decreases • Recalculate rent when resident income increases by




occurring between annual recertifications • Sign consent forms for income verification • Follow lease requirements and house rules Income Determinations A family’s anticipated gross income determines not only eligibility for assistance, but also determines the rent a family will pay and the subsidy required. The anticipated income, subject to exclusions and deductions the family will receive during the next twelve (12) months, is used to determine the family’s rent. What Is Annual Income? Gross Income – Income Exclusions = Annual Income What Is Adjusted Income? Annual Income – Deductions = Adjusted Income

http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4350.3/43503x14DHSGH.doc�



1-14

Determining Tenant Rent Rent Supplement Rent Formula: The rent a family will pay is the higher of the following amounts: • 30% of the family’s monthly adjusted income • 30% of Gross Rent. If this is a move-in or initial certification, the family is only eligible if their total tenant payment is less than 90% of Gross Rent. Income and Assets HUD assisted residents are required to report all income from all sources to the Owner or Agent (O/A). Exclusions to income and deductions are part of the tenant rent process. When determining the amount of income from assets to be included in annual income, the actual income derived from the assets is included except when the cash value of all of the assets is in excess of $5,000, then the amount included in annual income is the higher of 2% of the total assets or the actual income derived from the assets. Annual Income Includes: • Full amount (before payroll deductions) of wages





• Payments in lieu of earnings, such as unemployment and disability compensation, worker’s compensation and severance pay **(except for lump-sum additions

to family assets, see Exclusions from Annual Income, below)**















1-15













8 program for students who are enrolled in an institution of higher education under Annual Income includes, above,** the full amount of student financial assistance either paid directly to the student or to the educational institution



• Amounts received by a person with a disability that are disregarded for a limited time for purposes of

Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS)













US that is held in trust for certain Indian Tribes



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• Payments or allowances made under the Department of Health and Human Services’ Low-Income Home Energy Assistance Program













• Any amount of crime victim compensation (under the Victims of Crime Act) received through crime victim assistance (or payment or reimbursement of the cost of such assistance) as determined under the Victims of Crime Act because of the commission of

a crime against the applicant under the Victims of Crime Act




family or disabled family that total more than 3% of Annual Income. Family income expenditure is applied only one time








September 2008 Attachment 1-E. PAC/PRAC Fact Sheet



Section 202/162 – Project Assistance Contract (PAC) Section 202/811 – Project Rental Assistance Contract

(PRAC)

“HOW YOUR RENT IS

DETERMINED”

Office of Housing

**June 2007**




which resident families are entitled. O/As and residents all have a responsibility in ensuring that the correct rent is paid. O/As’ Responsibilities: • Obtain accurate income information • Verify resident income

• Ensure residents receive the exclusions and deductions to which they are entitled

• Accurately calculate Tenant Rent • Provide tenants a copy of lease agreement and


composition and decreases or increases in income are reported by $200 more per month

• Provide information on O/A policies upon request • Notify residents of any changes in requirements or

practices for reporting income or determining rent

Residents’ Responsibilities: • Provide accurate family composition information • Report all income • Keep copies of papers, forms, and receipts which


occurring between annual recertifications • Sign consent forms for income verification • Follow lease requirements and house rules

Income Determinations

A family’s anticipated gross income determines not only eligibility for assistance, but also determines the rent a family will pay and the subsidy required. The anticipated income, subject to exclusions and deductions the family will receive during the next twelve (12) months, is used to determine the family’s rent. What Is Annual Income?



Annual Income – Deductions = Adjusted Income Determining Tenant Rent The rent a family will pay is the highest of the following amounts: • 30% of the family’s monthly adjusted income • 10% of the family’s monthly income • Welfare rent or welfare payment from agency to assist family in paying housing costs. Note: An owner may admit an applicant to the PAC program only if the Total Tenant Payment is less than the gross rent. This note does not apply to the PRAC program. In some instances under the PRAC program a tenant’s Total Tenant Payment will exceed the PRAC operating rent (gross rent).

http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4350.3/43503x14EHSGH.doc�







1-18

Income and Assets HUD assisted residents are required to report all income from all sources to the Owner or Agent (O/A). Exclusions to income and deductions are part of the tenant rent process. When determining the amount of income from assets to be included in annual income, the actual income derived from the assets is included except when the cash value of all of the assets is in excess of $5,000, then the amount included in annual income is the higher of 2% of the total assets or the actual income derived from the assets. Annual Income Includes: • Full amount (before payroll deductions) of wages




• Full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts, including lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount **(except for deferred periodic payments of supplemental security income and social security benefits, see Exclusions from annual Income, below)**





• **For Section 8 programs only, in excess of amounts received for tuition, that an individual

receives under the Higher Education Act of 1965, shall be considered income to that individual, except that financial assistance is not considered annual income for persons over the age of 23 with dependent children or if a student is living with his or her parents who are receiving section 8 assistance. For the purpose of this paragraph, “financial assistance” does not include loan proceeds for the purpose of determining income.**













• Assets disposed of for less than fair market value as



1-19

a result of: • Foreclosure • Bankruptcy • Divorce or separation agreement if the applicant








8 program for students who are enrolled in an institution of higher education under Annual Income Includes, above,**The full amount of student financial assistance either paid directly to the student or to the educational institution





















• Amounts of scholarships funded under Title IV of the Higher Education Act of 1965, including awards



1-20

under the Federal work-study program or under the Bureau of Indian Affairs student assistance programs










• Allowances, earnings and payments to individuals participating under the Workforce Investment Act of 1998



family or disabled family that total more than 3% of Annual Income the expenditure is applied only one time

• Unreimbursed reasonable attendant care and auxiliary apparatus expenses for disabled family

member(s) to allow family member(s) to work that total more than 3% of Annual Income



Reference Materials Regulations: • General HUD Program Requirements;24 CFR Part 5

and CFR 24 Part 891. Handbook: • 4350.3, Occupancy Requirements of Subsidized



September 2008 Attachment 1-F. Section 236 Fact Sheet



Section 236

“HOW YOUR RENT IS

DETERMINED”

Office of Housing

**June 2007**




which resident families are entitled. O/As and residents all have a responsibility in ensuring that the correct rent is paid. O/As’ Responsibilities: • Obtain accurate income information • Verify resident income • Ensure residents receive the exclusions and

deductions to which they are entitled • Accurately calculate Tenant Rent • Provide tenants a copy of lease agreement and



$200 or more per month

• Provide information on O/A policies upon request • Notify residents of any changes in requirements or



occurring between annual recertifications • Sign consent forms for income verification • Follow lease requirements and house rules Income Determinations A family’s anticipated gross income determines not only eligibility, but also determines the rent a family will pay. The anticipated income, subject to exclusions and deductions the family will receive during the next twelve (12) months, is used to determine the family’s rent. What Is Annual Income?



Annual Income – Deductions = Adjusted Income Determining Tenant Rent

Section 236 Rent Formulas: All Section 236 Projects have a minimum rent (Basic Rent) and a maximum rent (Market Rent). Section 236 with NO Utility Allowance; the higher of: • 30% of the family’s monthly adjusted income • Basic Rent • But not more than Market Rent Section 236 WITH Utility Allowance; the Highest of: • 30% of the family’s monthly adjusted income less

the Utility Allowance • 25% of the family’s monthly adjusted income • Basic Rent • But not more than Market Rent A Utility Allowance is approved by HUD when the cost of all or a portion of the utilities (except telephone) is not included in the unit rent and payment for the utilities is the responsibility of the family occupying the unit. The utility allowance is not meant to pay all actual utility

http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4350.3/43503x14FHSGH.doc�



1-22

costs, but rather it is an allowance provided to the family to assist them in payment of their utility expenses. Income and Assets HUD assisted residents are required to report all income from all sources to the Owner or Agent (O/A). Exclusions to income and deductions are part of the tenant rent process. When determining the amount of income from assets to be included in annual income, the actual income derived from the assets is included except when the cash value of all of the assets is in excess of $5,000, then the amount included in annual income is the higher of 2% of the total assets or the actual income derived from the assets. Annual Income Includes: • Full amount (before payroll deductions) of wages




• Full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts, including lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount **except for deferred periodic payments of supplemental security income and social security benefits, see Exclusions from Annual Income, below)**





• **For Section 8 programs only, any financial assistance, in excess of amounts received for tuition, that an individual receives under the Higher Education Act of 1965, shall be considered income to that individual, except that financial assistance is not considered annual income for persons over the age of 23 with dependent children or if a student is living with his or her parents who are receiving section 8 assistance. For the purpose of this paragraph, “financial assistance” does not include loan proceeds for the purpose of determining income**





investments • Personal property held as an investment • Lump sum receipts or one-time receipts • Mortgage or deed of trust held by an applicant • Assets disposed of for less than fair market value.

Assets Do Not Include: • Necessary personal property (clothing, furniture,










1-23









8 program for students who are enrolled in an institution of higher education under Annual Income Includes, above, ** the full amount of student financial assistance either paid directly to the student or to the educational institution






• Incremental earnings and benefits resulting to any family member from participation in qualifying State

or local employment training programs and training of a family member as resident management staff

















1-24















• Unreimbursed reasonable attendant care and auxiliary apparatus expenses for disabled family

member(s) to allow family member(s) to work that total more than 3% of Annual Income

• If an elderly family has both unreimbursed medical expenses and disability assistance expenses, the family’s 3% of income expenditure is applied only one time.





4669, April 20, 2001 For More Information: • Find out more about HUD’s programs on HUD’s

Internet homepage at http://www.hud.gov

September 2008 Attachment 2. Tenant File Sample

RHIIP Rent & Income Determination Quality Control Monitoring Guide September 2008 For Multifamily Housing Programs

2-1

ATTACHMENT 2 – TENANT FILE SAMPLE

Unit No. Tenant Family Head SSN Unit Size Initial or Re-exam Comments

September 2008 Attachment 3. TRACS Query Reports


3-1

ATTACHMENT 3 – TRACS QUERY REPORTS TRACS Query Reports and Who Has Access to Them:

Application/Report TRACS

User O/A HUD Staff TCA PBCA

Voucher Contract/Project Based Voucher Summary Query X X Manual Voucher Submission and Review X Maximum Voucher Amount and Auto Review X Over/Under Payment Resolution X X Pre-Payment Decisions X Special Claims Approval X Voucher Detail/Summary Reports X X X Voucher Tenant Compliance Query X X X X

Voucher Query X X X X Tenant Assistance Payment Query X X X X Certification Query X X X X Certifications with Discrepancies Query X X X X Late Recertification Query X X X X Move-In/Move-Out Query X X X X

Move-out Request MF Help

Desk Multiple Occupancy Query X X X X Project Evaluation Query X X X

Project Re-Baseline Query MF Help

Desk Tenant Unit Address Query X X X X Verification Query X X X X Funding/Contract ARAMS X Reference materials for TRACS Query Reports found on the TRACS Web Sites: • Industry User Guide for TRACS Internet Applications http://www.hud.gov/offices/hsg/mfh/trx/trxngde.cfm • TRACS Internet Applications User Guide for HUD Staff http//hudatwork.hud.gov/po/h/hm/tracs/trxhome.cfm

http://www.hud.gov/offices/hsg/mfh/trx/trxngde.cfm�

http://hudatwork.hud.gov/po/h/hm/tracs/trxhome.cfm�



3-2

Voucher TRACS HUDweb

• •

Contract/Project Based Voucher Summary Query

• Manual Voucher Submission and Review

• Maximum Voucher Amount and Auto Review

• Over/Under Payment Resolution

• Pre-Payment Decisions

• Special Claims Approval

• Voucher Details/Summary Reports

Voucher Query a. o

-from this query you can go to

b. o TRACS Voucher List

c. o TRACS Voucher Detail

• TRACS Voucher Discrepancies

Voucher Tenant Compliance Query Voucher Query

Tenant • •

Assistance Payment Query Certification Query

a. – from this query you can go to

b. TRACS Certification List

c. TRACS Certification History List

d. TRACS Certification Discrepancies

• TRACS Certification Member List

• Certification with Discrepancies Query

• Late Recertification Query

• Move-In/Move-Out Query

• Move-Out Request

• Multiple Occupancy Query

• Project Evaluation Query

• Project Re-baseline Request

• Tenant Unit Address Query

Verification Query

Funding/Contract •

ARAMS

Documents/User Guides • General Information • Tenant User Guide



3-3

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TRACS VOUCHER LIST

Contract/Project Number: KM34S961132 Project Name: MARTIN CIRCLE APARTMENTS Subsidy Type: Section 202 PRAC Subsidy Contract Expiration Date: 1/31/09 Active Tenant Count/Units: 8/9 (88.8%) Select a Voucher ID to view additional voucher details.

Voucher ID Voucher Date

Correct- ion Ind

TRACS Processed Date

Status Code

Status Date

Discrep- ancy Ind

Approved Voucher Amount

Offset Amount

Amount Paid

Est Pay Date Payee TIN LOCCS Payee Name Action ID

Contract Administrator ID

Compliance Percent

Scheduled Pay Amount

LOCCS Voucher ID

0803011000 3/1/08 N 2/14/08 R41 2/15/08 $-511 $0 $0 LOCCS 77.7

0802001001 2/1/08 N 1/11/08 T53 2/19/08 Y $410 $0 $0 TRACS 88.8

0801001002 1/1/08 N 12/7/07 R00 12/7/07 $-148 $0 $0 TRACS 77.7

0712001003 12/1/07 N 11/9/07 T53 11/9/07 Y $409 $0 $0 TRACS 77.7

0711001004 11/1/07 N 10/9/07 T53 10/9/07 Y $409 $0 $0 TRACS 88.8

0710001005 10/1/07 N 9/7/07 T53 9/7/07 Y $409 $0 $0 TRACS 77.7

0709001006 9/1/07 N 8/7/07 P00 8/31/07 $322 $0 $322 9/4/07 999999999 WINGLY ELDERLY APTS LOCCS 100











3-4

U.S. Department of Housing and Urban Development

TRACS Voucher Detail

Contract/Project Number: DD06E941001 Project Name: SUMMER VIEW Voucher ID: 1234567890 Voucher Date: 12/1/09

Transmission Details

Mailbox ID: TRACM99999TRACM99999 Transmission Date: 12/23/09

Payment Requested

Total Regular Payment Amount: $ 6843 Total Adjusted Payment Amount: $ 833

Voucher Unrequested Amount: $ 0 Total Miscellaneous Request Amount: $ 0

Total Special Claims Amount: $ 0 Total Voucher Amount: $ 7676

Over/Under Payment Resolution

Over/Under Payment Resolution Date: 12:00:00 AM Over/Under Payment: $ 0

Notification to HUD: 12:00:00 AM

Owner/Management Details

Owner Name: REHAB PARTNERS Owner Signed Name: MARY REHAB

Owner Signed Title: Owner Signed Phone: (710) 245-9999

Owner Signed Date: 12/23/09



3-5

Management Agent Name: REHAB PARTNERS Management Agent EIN: 999999999

Project/Contract Details

Section 8 Type: HAP Effective 10/1/82:

HAP Signed 10/3/84: AHAP Signed 10/1/82:

Units

Total Units in Contract: 20 Units Occupied By Lower Income Tenants: 0

Units Occupied By Market Rent Tenants: 0 Units Receiving Subsidy Under Contract: 18

Units In Regular Billing: 18 Units In Adjusted Billing: 2

Units Vacant Under Contract: 2

Exceptions

Project-Based Exceptions In Use: 0 Project-Based Exceptions Allocated: 0

Tenant-Based Exceptions In Use: 0 Total Exceptions: 0

Exceptions Allocation Last Changed:



3-6


TRACS Voucher Discrepancies

Contract/Project Number: DD06E941001 Project Name: Summer View Voucher ID: 1234567890 Voucher Date: 12/1/06

Discrepancy Code Description Recommendation Action

Required

Discrepancy Detail

Indicator

VST53 VOUCHER FAILED COMPLIANCE PERCENTAGE STANDARD FOR REVIEW. FOR DIRECTION, CONTACT THE TRACS HELPDESK AT 1-800-767-7588. 3 N

VSP00 VOUCHER SENT TO TREASURY FOR PAYMENT. N/A - INFORMATION ONLY 3 N



3-7

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

TRACS CERTIFICATION LIST Contract/Project Number: KM34S961132 Sorted By: Unit

Subsidy Contract Expiration Date: 1/31/09

Active Tenant Count/Units: 8/9 (88.8%) Select a Tenant Name to view additional certification details. Highlighted rows correspond to Active Tenant Count.

Tenant Name SSN Unit Number

Effective Date

Cert Type

Action Code

Action Effect Date

TRACS Process

Date AP TTP Annual

Income Adjusted Income

Gross Rent

Assist Status Code

Project or Contract Number

Subsidy Type

Previous Contract Number

Next Recert Date

Bedroom Count

Over/ Under

Housed

Move In Date

XXXXX0000 CXXXX, K. E. 1 3/1/07 AR 3/8/07 $151 $134 $7884 $5351 $285 N 999EE999 7 3/1/08 1 3/1/04

XXXXX0001 SXXXX, M. 10 4/1/07 *AR* MO 7/31/07 8/7/07 $102 $183 $7716 $7316 $285 N 999EE999 7 4/1/08 1 4/25/06

XXXXX0002 MXXXX,, B. 11 8/1/07 *AR* 8/7/07 $-26 $311 $12840 $12440 $285 N 999EE999 7 8/1/08 1 8/1/04

XXXXX0003 SXXXX, L. J. 12 2/1/08 *AR* 2/14/08 $-3 $288 $12762 $11517 $285 N 999EE999 7 2/1/09 1 2/6/07

XXXXX0004 W,XXX G. B. 2 2/1/08 AR 2/14/08 $88 $197 $8688 $7888 $285 N 999EE999 7 2/1/09 1 2/1/06

XXXXX0005 WXXXX,, C. 3 7/1/07 *AR* 7/9/07 $-23 $308 $15930 $12306 $285 N 999EE999 7 7/1/08 1 7/1/05



3-8

U.S. Department of Housing and Urban Development TRACS Certification History List

Head Tenant Name: J, C. Project/Contract Number: DU008023100

Head Tenant SSN: 100000001 Sorted By: Effective Date

Select a Head Tenant Name to view additional certification details.

Head Tenant Name

Head SSN

Unit Number

Effective Date

Seq Num

Cert Type

Action Code

Action Effective

Date

TRACS Process

Date

AP TTP Annual Income

Adjusted Income

Gross Rent

Assist Status Code

Project/ Contract Number

Subsidy Type

Previous Contract Number

Next Recert Date

Bedrm Count

Over/ Under housed

Move In Date

JXXXX, C. XXXXX0001 03 12/1/06 1 *AR* 4/16/07 $1261 $139 $7008 $5568 $1400 F 98443105 1 12/1/07 3 U 12/1/90

JXXXX, C. XXXXX0001 03 12/1/04 4 *AR* 3/11/05 $1237 $163 $8448 $6528 $1400 F 98443105 1 12/1/05 3 O 12/1/90

JXXXX, C. XXXXX0001 03 2/1/04 1 *IR* 5/12/04 $1247 $153 $8028 $6108 $1400 F 98443105 1 12/1/04 3 O 12/1/90

JXXXX, C. XXXXX0001 07 2/1/94 1 *IR* 7/8/94 $703 $181 $8676 $7236 $884 98443105 1 12/1/94 2 U 12/1/90



3-9


TRACS Certification Discrepancies Head Tenant Name: JXXX, C. Certification Effective Date: 12/1/06

Head Tenant SSN: XXXXX0001 Project/Contract Number: DU008023100 Discrepancy

Code Description Recommendation Action Required

Member Number

Reported Value

Calculated Value

CE011 HOUSEHOLD APPEARS UNDERHOUSED COMPARE # OF BEDROOMS TO # OF HOUSEHOLD MEMBERS, AGES, AND RELATIONSHIPS 4



3-10


TRACS Certification Member List

Head Tenant Name: JOHNSON, C. Project/Contract Number: DU008023100 Head Tenant SSN: 100000001 Effective Date: 2/1/04

Change Sequence #: 1 Sorted By: Member Number

Member Last

Name

Member First Name

Member Middle Initial

Member SSN

Alien Registration

Number

Relationship Code

Member Number

Date Of Birth

Sex Member Eligibility

Code

Special Status Code

Occupation Description

JXXXX C XXXXX0001 H 01 11/4/71 F EC

JXXXX T J XXXXX0002 S 02 5/22/75 M PV

SXXXX S XXXXX0003 D 03 5/12/68 M EC

MXXXX B B XXXXX0004 D 04 4/30/94 M EC

MXXXX R J XXXXX0005 D 05 9/17/95 M EC

JXXXX J T XXXXX0006 D 06 8/4/99 M PV



3-11


TRACS Multiple Occupancy Report

As of 08/18/2007 Report Type: Units (in a project occupied by multiple households.) Requested Contract: DU55LOO1257 Project: (No associated project number exists for the following list.)

Unit Contract Number

Head SSN Head Tenant Effective Date

109-A DU55LOO1257 XXXXX0007 WXXX, BETTY 08/01/2006 109-A DU55LOO1257 XXXXX0008 CXXXX, SHIRLEY I 04/26/2007 302-A DU55LOO1257 XXXXX0009 YXXX, SUSAN Y 03/01/2007 302-A DU55LOO1257 XXXXX0010 TXXXX, RICHARD I 05/01/2007 314-C DU55LOO1257 XXXXX0011 CXXXX, EMMA M 03/01/2007 314-C DU55LOO1257 XXXXX0012 PXXX, ARTA L 04/27/2007



3-12

U.S. Department Of Housing and Urban Development TRACS Move-In/Move-Out Report

Contract Number: DU55LOO1257 Total Number of Move-ins: 13 Date Range: 01/01/2007 - 01/01/2008 Total Number of Move-outs: 13

*= no move-in or move-out record within date range

Project Number

Unit Number

Bedroom Count

Household Member

Count Move-in Date Move-out Date Move-out

Reason Head

Tenant Name SSN

103-B 1 1 11/2/07 * SXXXX, R. XXXXX0013 109-A 1 1 * 3/31/07 3 CXXXX, B. XXXXX0014 208-B 1 1 7/27/07 * GXXXX, Q. XXXXX0021 209-A 1 1 * 7/31/07 3 VXXXX, B. E. XXXXX0022 209-A 1 1 8/20/07 * MXXX, M. E. XXXXX0023 210-C 1 1 11/19/07 * HXXX, M. J. XXXXX0024 210-C 1 1 * 10/22/07 4 CXXXX, H. XXXXX0025 211-A 1 1 * 10/31/07 3 RXXXX, H. J. XXXXX0026 302-A 1 1 * 4/1/07 3 BXXXX, S. Y. XXXXX0027 302-A 1 1 8/10/07 * TXXXX, F. C. XXXXX0028 302-A 1 1 5/1/07 7/4/07 4 MXXXX, R. O. XXXXX0029 305-C 1 1 11/9/07 * TXXXX, D. J. XXXXX0030 305-C 1 1 * 9/15/07 3 OXXXX, B. I. XXXXX0031




3-13

TRACS Project Evaluation Report

Contract Number: DU55MOO1257 Total Number of Potential Concerns: 26

Each row is the current/active certification and the X confirms a potential concern.

Project Number Unit Head

Tenant Name SSN

Assets Changed

by $500/20% (+ or -)

No Family Income

No Assets

Sect. 8 TTP <$25

Elderly without Medical

Allowance

Totals (X)

102-C LXXXXS, J. XXXXX0032 X X 2 103-C SXXX, J. XXXXX0033 X 1 106-C BXXXX, D. XXXXX0034 X 1 109-A LXXXX, S. XXXXX0035 X 1 113-C MXXXX, B. XXXXX0036 X 1 204-A CXXXX, R. XXXXX0037 X 1 207-B WXXXX, G. XXXXX0038 X 1 210-A GXXXX, C. XXXXX0039 X X 2 212-B FXXXX, D. XXXXX0040 X 1 301-A JXXXX, Y. XXXXX0041 X 1 302-A BXXXX, S. XXXXX0042 X 1 304-A BXXX, H. XXXXX0043 X 1 305-A MXXXX, K. XXXXX0044 X 1 306-C LXXX, J. XXXXX0045 X 1 307-B SXXXX, R. XXXXX0046 X 1

Totals (X) 0 0 7 0 10 17




3-14

TRACS Verification Report

Contract Number: DU55MOO1269 Sorted By: Head Tenant Name

Each row is the most up-to-date certification for an active household.

Project Number

Bedroom Count

Household Member

Count

Unit Head Tenant Name

Head Tenant

SSN

Very Low

Income Limit

($)

Low Income Limit

($)

Contract Rent ($)

Utility Allow

($)

Gross Rent ($)

Market Rent ($)

1 1 109-B AXXXX, J. XXXXX0055 25100 40150 723 0 723 0 1 1 203-B AXXXX, J. XXXXX0056 25100 40150 723 0 723 0 1 1 303-A BXXXX, M. XXXXX0057 25100 40150 723 0 723 0 1 1 213-A BXXXX, L. XXXXX0058 25100 40150 723 0 723 0 1 1 305-B BXXXX, J. XXXXX0059 25100 40150 723 0 723 0 1 1 304-A BXXXX, H. XXXXX0060 25100 40150 723 0 723 0 1 1 312-C BXXXX, J. XXXXX0061 25100 40150 723 0 723 0 1 1 105-B BXXX, S. XXXXX0062 25100 40150 723 0 723 0 1 1 302-A BXXXX, S. XXXXX0063 25100 40150 723 0 723 0 1 1 315-C BXXXX, G. XXXXX0064 25100 40150 723 0 723 0 1 1 107-C BXXXX, J. XXXXX0065 25100 40150 723 0 723 0 1 1 115-A CXXXX, M. XXXXX0066 25100 40150 723 0 723 0 1 1 111-C CXXXX, A. XXXXX0067 25100 40150 723 0 723 0 1 1 103-B CXXXX, R. XXXXX0068 25100 40150 723 0 723 0 1 1 112-C CXXXX, V. XXXXX0069 25100 40150 723 0 723 0



3-15

U.S. Department of Housing and Urban Development TRACS Contract/Project Based Voucher Summary Report

Contract Number: FY26Q001004 Voucher Date Range: 01/01/2006-12/01/2006

Voucher Unit Summary Project Number

Project Name

Subsidy Type

Voucher Date

Subsidized Units

Vacant Units

Market Units

Total Units

999ZZ028 LEGION WOODS Section 811 PRAC 12/1/06 19 0 0 19 999ZZ028 LEGION WOODS Section 811 PRAC 11/1/06 19 0 0 19 999ZZ028 LEGION WOODS Section 811 PRAC 10/1/06 19 0 0 19 999ZZ028 LEGION WOODS Section 811 PRAC 9/1/06 19 0 0 19 999ZZ028 LEGION WOODS Section 811 PRAC 8/1/06 19 0 0 19 999ZZ028 LEGION WOODS Section 811 PRAC 7/1/06 19 0 0 19

Totals 114 0 0 114

Voucher Payment Summary

Project Number

Project Name

Voucher Date

Regular Tenant

Assistance

Misc Account Request

Adjustments Unpaid Rent Damages Rent

Up Regular Vacancy

Debt Service

Total Subsidy

Requested

Total Subsidy

Approved

999ZZ028 LEGION WOODS 12/1/06 6606 0 0 0 0 0 0 0 6606 6606

999ZZ028 LEGION WOODS 11/1/06 7106 0 0 0 0 0 0 0 7106 7106

999ZZ028 LEGION WOODS 10/1/06 7106 0 0 0 0 0 0 0 7106 7106

999ZZ028 LEGION WOODS 9/1/06 6663 0 0 0 0 0 0 0 6663 6663

Totals 34144 0 5307 0 0 0 0 0 39451 39451



3-16

U.S. Department of Housing and Urban Development TRACS Voucher Tenant Compliance Report

Sort By: Reference Number

Active Tenant

Count Date Reference Number

Active Tenant Count

Regular Units Billed Count

Compliance Percentage

Most Recent Voucher Date

Total Units In Contract

Contract Status Code

Program Type

01/25/2008 FY050006002 146 148 98.60% 02/01/2008 150 ACTV Sec 8 NC 01/25/2008 FY050021005 79 77 102.60% 02/01/2008 82 ACTV Sec 8 NC 01/25/2008 FY050032001 26 26 100.00% 02/01/2008 26 ACTV Sec 8 NC



3-17


TRACS Assistance Payment Report

Contract/Project Number: PD26Q001004 Sorted by: Unit Effective Date Range: 01/01/2006 - 12/01/2006

Tenant Name SSN Unit

Num Effective

Date Cert Type

Act Cd

Sub #

Action Effective

Date

TRACS Process

Date

TRACS Calc AP

MAT AP

APP Diff TTP Annual

Income

Adjustment

Income

Con Rent

Util Allow

Project Number

Sub Type

Vouch Date

FXXXX,R XXXXX1313 1A 7/7/06 IC 2 7/7/06 3/14/07 207 207 0 364 14954 14554 571 0 999ZZ028 H8

FXXXX,R XXXXX1313 1A 7/7/06 IC 1 1 7/7/06 3/13/07 207 207 0 364 14954 14554 571 0 999ZZ028 H8

SXXXX,H XXXXX1314 1B 7/7/06 IC 2 7/7/06 3/14/07 571 571 0 0 0 0 571 0 999ZZ028 H8

SXXXX,H XXXXX1314 1B 7/7/06 IC 1 1 7/7/06 3/13/07 571 571 0 0 0 0 571 0 999ZZ028 H8

CXXXX,S XXXXX1316 1D 7/7/06 IC 1 7/7/06 2/16/07 341 341 0 230 9576 9176 571 0 999ZZ028 H8

FXXXX,V XXXXX1319 1E 7/7/06 IC 1 7/7/06 2/16/07 317 317 0 254 10572 10172 571 0 999ZZ028 H8

FXXXXA XXXXX1310 1F 11/1/06 IR 1 11/1/06 4/2/07 374 374 0 197 8256 7856 571 0 999ZZ028 H8

FXXXXA XXXXX1310 1F 10/1/06 IR 1 2 10/1/06 5/11/07 437 437 0 134 5760 5360 571 0 999ZZ028 H8

FXXXXA XXXXX1310 1F 10/1/06 IR 1 10/1/06 3/28/07 437 437 0 134 5760 5360 571 0 999ZZ028 H8

FXXXXA XXXXX1310 1F 7/7/06 IC 1 7/7/06 2/16/07 571 571 0 0 0 0 571 0 999ZZ028 H8

SXXXX,M XXXXX7413 2 C 7/7/06 IC 1 7/7/06 2/16/07 317 317 0 254 10572 10172 571 0 999ZZ028 H8

WIXXXX,B XXXXX1313 2 D 8/1/06 IR 1 2 8/1/06 5/11/07 244 244 0 327 13494 13094 571 0 999ZZ028 H8

WXXXX,B XXXXX1313 2 D 8/1/06 IR 1 8/1/06 3/28/07 244 244 0 327 13494 13094 571 0 999ZZ028 H8

WXXXX,B XXXXX1313 2 D 7/13/06 IC 2 7/13/06 3/14/07 244 244 0 327 13494 13094 571 0 999ZZ028 H8

WXXXX,B XXXXX1313 2 D 7/13/06 IC 1 1 7/13/06 3/13/07 244 244 0 327 13494 13094 571 0 999ZZ028 H8

TXXXX,A XXXXX9713 2 E 12/1/06 IR 1 2 12/1/06 5/11/07 401 401 0 170 7176 6776 571 0 999ZZ028 H8

Total TRACS Calculated Assistance Payment: $13365 Total MAT Assistance Payment: $13365 Total Assistance Payment Difference: $0



3-18

U.S. Department Of Housing and Urban Development TRACS Certifications with Discrepancies Report

Contract Number: PD26Q001004 Date Range Type: Effective Date Date Range: 08/01/2006 - 12/01/2006 Sorted By: Unit

*= no certifications within date range

Project Number Unit Tenant

Name Tenant

SSN Effective

Date # of Days

Unresolved

Action Code (1-3)

Discrepancy Code

Discrepancy Description

999ZB028 1F AXXXX,ADAM,S XXXXX2121 11/1/06 301 3 SS012 SSA VERIFIED SS/SSI INCOME

HAS DIFFERENT NAME FOR SOCIAL SECURITY CLAIM

999ZB028 1F BXXXX,ADAM,S XXXXX3131 10/1/06 262 3 SS012 SSA VERIFIED SS/SSI INCOME

HAS DIFFERENT NAME FOR SOCIAL SECURITY CLAIM

999ZB028 2 D CXXXX,BRUCE,W XXXXX4141 8/1/06 262 3 SS014 SSA VERIFIED SS/SSI INCOME

HAS DIFFERENT NAME FOR SSI CLAIM

999ZB028 2 D DXXX,BRUCE,W XXXXX5151 8/1/06 262 3 SS016 TENANT AND SSA SS

INCOME MATERIALLY DIFFERENT

SSA GIVES SEPARATE AMOUNTS

999ZB028 2 D EXXX,BRUCE,W XXXXX6161 8/1/06 262 3 SS017 TENANT AND SSA SSI



999ZB028 2 E FXXXX,ALBERTA,L XXXXX7171 12/1/06 262 3 SS016 TENANT AND SSA SS



999ZB028 2 G IXXXX,P XXXXX0101 10/1/06 262 3 SS017 TENANT AND SSA SSI





3-19


TRACS Late Recertification Report

Contract Number: PD26Q001004 Report Type: All Certifications

Total Number of Late Recertifications: 2 Sorted By: Unit

Project Number Unit Tenant Name Tenant SSN Effective

Date Next Recert

Date Number of Days Late

Termination Date

Termination Reason

999ZB028 1F WXXXX, A. S. XXXXX1212 11/1/06 7/1/07 211 999ZB028 3 B WXXXX, J. XXXXX1313 12/1/06 7/1/07 211 6/30/07 HQ

September 2008 Attachment 4. Sample Eligibility, Income, and Deduction Checklist


4-1

ATTACHMENT 4 – SAMPLE ELIGIBILITY, INCOME, AND DEDUCTION CHECKLIST

This form is to be completed by the head of household and/or the co-head.

LIST ALL HOUSEHOLD MEMBERS:

Name (Last, First, M.I.) Relationship Date of Birth Sex ____________________________ ___________ ___/___/___ ___ __________________

Social Security #

____________________________ ___________ ___/___/___ ___ __________________ ____________________________ ___________ ___/___/___ ___ __________________ ____________________________ ___________ ___/___/___ ___ __________________ ____________________________ ___________ ___/___/___ ___ __________________ ____________________________ ___________ ___/___/___ ___ __________________ ____________________________ ___________ ___/___/___ ___ __________________ ____________________________ ___________ ___/___/___ ___ __________________ ____________________________ ___________ ___/___/___ ___ __________________ ELIGIBILITY YES

NO

1. Do you have a family member who is absent from the home due to: Employment ____ ____ Military service ____ ____ Placement in foster care ____ ____ Temporarily in nursing home or hospital ____ ____ Permanently confined to a nursing home ____ ____ Away at school ____ ____ Away at school with an established residence (lease) ____ ____ Other ____ ____

2. Do you have a live-in attendant ____ ____ If yes, is the live-in attendant your adult child or related to you in any way? ____ ____ 3. Expected changes in household:

Baby due on _____________________________ ____ ____ Adopting a child(ren) on ________________________ ____ ____ Obtaining custody of a child(ren) on _________________ ____ ____ Obtaining joint custody of a child(ren) on _______________ ____ ____ Receiving a foster child(ren) on _____________________ ____ ____

4. Are you, or a family member, enrolled either part-time or full-time ____ ____

at an institution of higher education.



4-2

INCOME, ASSETS, AND DEDUCTIONS

A. Income: YES

NO

1. Are you or any other members of the household currently receiving income from any of the following sources? ____ ____ Wages/salaries ____ ____ Wages earned through a government program such as Senior

Aides, Older American Community Service Employment Program, Americorps ____ ____ If yes, which program? ________________________

Tips, bonuses or commissions ____ ____ Overtime pay ____ ____ Income from operation of a business ____ ____ Social security ____ ____ Disability/SSI ____ ____ Death Benefits ____ ____ Pensions/retirement funds ____ ____ Annuities or non-revocable trust ____ ____ Unemployment ____ ____ Military Pay ____ ____ Workman’s Compensation ____ ____ Public assistance/TANF ____ ____ Alimony ____ ____ Child Support ____ ____ Income from rent or sale of property ____ ____ Periodic payments from lottery winnings ____ ____ Regular recurring contributions from persons or agencies outside

of Household ____ ____ Insurance policies ____ ____ Severance pay ____ ____ Student financial assistance ____ ____

If yes, what is the source(s) of the financial assistance? ____________________________________________________________

If yes, how much is the financial assistance received? ________________ If yes, what is the cost of tuition? _________________ Other ____ ____

2. Did you or any other members of the household file a federal tax return last year? ____ ____

3. Are there any adult members of the household (18 years of age or

older) receiving income not listed above? ____ ____ If yes, specify the source of the income _________________



4-3

B. Assets: YES

NO

1. Do you or any other members of the household have any of the following: Checking accounts ____ ____ Savings accounts ____ ____ Certificates of deposit ____ ____ Money Market funds ____ ____ IRA/Keogh account ____ ____ Stocks ____ ____ Bonds ____ ____ Treasury bills ____ ____ Trusts ____ ____ If yes, is the trust irrevocable? ____ ____ Real estate ____ ____ Whole life or universal life insurance policy ____ ____ Cash held in safety deposit boxes or home ____ ____ Assets held in another state or foreign country ____ ____ Other ____ ____

2. Have you or any other members of the household received any lump sum payments, such as:

Inheritance ____ ____ Lottery winnings ____ ____ Insurance settlements ____ ____ Other ____ ____

3. Have you or any other household member disposed of any asset(s) for less than fair market value in the past two (2) years? ____ ____

4. Do you or any other household members have any assets that are

held jointly with another person? ____ ____

C. Deductions: YES NO

1. Are there any fulltime students 18 years of age or older in the household? ____ ____

2. Is any household member elderly (62 or older) or a person with

disabilities? ____ ____ 3. Do you have medical expenses that are not paid for by an outside

source such as insurance? ____ ____



4-4

YES

NO

4. Do you have disability expenses that are not paid for by an outside source? ____ ____

If yes, is this service necessary to enable a family member (including the member with a disability) to be employed? ____ ____

4. Do you have attendant care expenses? ____ ____ If yes, is this service necessary to enable a family member (including the member with a disability) to be employed? ____ ____

5. Do you currently pay for childcare services for any children under the age of 13 residing in your household? ____ ____

If yes, is this service necessary in order for you to be employed or to attend school? ____ ____ If yes, are any of these expenses reimbursed by an outside source? ____ ____

Penalties for Committing Fraud: The United States Department of Housing and Urban Development (HUD) places a high priority on preventing fraud. If your application or recertification forms contain false or incomplete information, you may be:

• Evicted • Required to repay all overpaid rental assistance you received • Fined up to $10,000 • Imprisoned for up to five (5) years • Prohibited from receiving assistance

Your state and local governments may have other laws and penalties as well. By signing below I am certifying that I have completed this questionnaire and that the answers that I have given are true and complete to the best of my knowledge. ____________________________________________________ _____/_____/_____ Head of Household Date ____________________________________________________ _____/_____/_____ Co-head of Household Date

September 2008 Attachment 5. Required Tenant File Documentation


5-1

ATTACHMENT 5 – REQUIRED TENANT FILE DOCUMENTATION Tenant file records are critical pieces of source documentation, perhaps the critical source documentation, used as evidence to support determinations and conclusions in all areas of occupancy monitoring. The tenant file records must be complete and contain all information and forms relevant to occupancy at the project, including: I. Application/Household Information A. Pre-application/application B. Screening information/forms C. Verification/certification of social security numbers (family members age 6 and older) D. Verification of income E. Citizenship declaration/immigration status (all family members) F. Consent forms

1. HUD-9887, Notice and Consent to the Release of Information (family members age 18 and older and head of household, spouse, co-head, regardless of age)

2. HUD-9887-A, Applicant’s/Tenant’s Consent to the Release of Information (family members age 18 and older and head of household, spouse, co-head, regardless of age)

G. Preference verification, if applicable H. Eligibility verification documents (e.g., person with disabilities, elderly, live-in aide,

assistive animal, etc.) I. Acknowledgement of the head of household’s receipt of lead-based paint disclosure

brochure, if applicable J. Acknowledgement of head of household’s receipt of Resident Rights and

Responsibilities brochure K. Race and ethnicity certification II. Lease A. Lease B. Lease amendments/addendums/agreements C. Project rules and regulations D. Pet rules and pet deposit receipt, if applicable E. Security deposit receipt, if applicable F. Move-in inspection report G. Annual inspection reports H. Lead-based paint addendum, if applicable III. Certification/Recertification A. Initial, interim, and annual recertifications B. HUD-50059 (Attachment 9) signed by O/A or manager who has authority to sign on

behalf of the owner and the head, spouse, co-head, and all other family members age 18 or older (It is recommended that certifications and supporting documentation be filed in chronological order with the most recent certification supporting documents on top)

C. Recertification notices (initial and, if applicable, first, second, and third)

September 2008 Attachment 5. Required Tenant File Documentation


5-2

D. Verifications for income, assets, and deductions E. Disposal of assets verification (head of household, spouse, co-head) F. Payment plans, if applicable G. Correspondence both issued to, or received from, tenant(s) IV. Other Files That Need to Be Maintained Move-out files A. The current tenant file will become the move-out file. In addition to the above items,

the move-out files must contain: 1. Copy of the intent to vacate notice received from the tenant 2. Copy of the notification provided to HUD or the CA 3. Move-out inspection report 4. Copy of the security deposit disposition notice provided to the tenant 5. Documents supporting retaining all or a portion of the security deposit 6. Special claims and supporting documentation

B. Application/Reject Files

1. Application 2. Documentation to support the reason(s) for rejecting, such as screening

information from previous landlords, personal references, credit reports, criminal activity, failure to declare citizenship or provide social security numbers, and refusal to sign consent forms

3. Copy of the written notice of rejection sent to the applicant 4. Any information or letters regarding appeals by applicants

September 2008 Attachment 6. Instructions for Completing the Tenant File Review Worksheet


6-1

ATTACHMENT 6 – INSTRUCTIONS FOR COMPLETING THE TENANT FILE REVIEW WORKSHEET

(Addendum A to Form HUD-9834)

These instructions are organized by section and question number on the Tenant File Review Worksheet, Addendum A to form HUD-9834, Management Review for Multifamily Housing Projects (see Attachment 7). Only questions related to income and rent determination are addressed in this document. Handbook references can be found in HUD Handbook 4350.3 REV-1, Occupancy Requirements of Subsidized Multifamily Housing Programs.

Question A.2: Are the household members identified correctly? (head, spouse, dependent, co-head, other adults, live-in aide)

Section A. Household Information

The reviewer will compare the code shown for each household member on the HUD-50059 to the information on the application, certification checklist or other information received from the applicant/tenant to determine the accuracy of the codes. The reviewer will use the household composition information to determine the correct unit size for the household and to determine whether the household qualifies for income exclusions and deductions. The Relationship Codes are: H Head S Spouse K Co-head D Dependent O Other adult member F Foster child L Others living in the unit who are not a member of the tenant

family

Question A.3: Is the unit size appropriate for household? The reviewer will use the tenant selection plan to determine the occupancy standards developed for the project and will ensure that the standards have been followed when assigning the family a unit. Occupancy standards outline the O/A’s policy concerning the number of occupants that can reside in a unit, based on the size of the unit or number of bedrooms in the unit. It is important that the O/A’s occupancy standards have been established to prevent over- or under-utilization of units as this could result in inefficient use of housing assistance. (See Handbook 4350.3 REV-1, Chapter 3, Paragraph 3-23.)



6-2

Question A.4: Was household income eligible at move-in? (This question applies only if the file being reviewed is coded on the HUD-50059 as Transaction type “MI” for move-in.) In order to qualify for occupancy, the family’s annual income must not exceed the applicable income limit for the project/contract and family size. (See Handbook 4350.3 REV-1, Chapter 3, Paragraph 3-6.E and F.) The reviewer should have determined the appropriate income limit (low-income limit or very low-income limit) for the project/contract being reviewed when preparing for the review. The reviewer will verify that the O/A is using the correct income limit applicable to the project/contract. The reviewer will compare the family’s annual income amount shown on the HUD-50059 to the applicable income limit for the project/contract to determine if the household was income eligible at move-in. NOTE: For the Rent Supplement program, the tenant is eligible for assistance at move-in or initial certification only if the total tenant payment (TTP) is less than 90 percent of the gross rent. (See Handbook 4350.3 REV-1, Chapter 5, Figure 5-6.) Question A.5: If household was not eligible at move-in, was an exception granted? In some instances, exceptions can be granted to the income limits for assisted projects. Refer to Handbook 4350.3 REV-1, Chapter 3, Paragraphs 3-7 and 3-8 for more details on waiving income limits. The reviewer will look at the HUD 50059 field, Income Exception Code, to determine if an income exception has been granted. If an exception has been granted where HUD or CA approval is needed, a copy of the letter approving the waiver must be in the tenant file. The Income Exception Codes are: CV The tenant: 1. Was converted (or is now being

converted) from the Rental Assistance Payment (RAP) or Rent Supplement 2. Received (or will now begin to receive) Section 8 as a result of a sale of a HUD-owned project

EDT HUD approved an exception for an in-place tenant who would otherwise be displaced, as described in HUD Handbook 4350.3 REV-1.

EIT Do not use this code for new move-ins. Continue to use this code for tenants who previously received a HUD-approved income exception.

EAT or

Do not use this code for new move-ins. Continue to use this code for tenants who



6-3

AA previously received an exception based upon these codes.

EP Tenant was admitted under one of the HUD-approved project-based exceptions, as described in HUD Handbook 4350.3 REV-1.

Question A.8: Have the HUD-9887 and HUD 9887-A consent forms been signed by head, spouse, and co-head regardless of age and family members at least 18 years of age? Each family member who is at least 18 years of age, and each family head, spouse and co-head regardless of age, must sign the HUD-required consent forms at move-in, initial certification, and annual recertification. The required consent forms are HUD-9887, Notice and Consent for the Release of Information, and HUD-9887-A, Applicant’s/Tenant’s Consent to the Release of Information. Applicants who fail to sign these forms are denied assistance, while in-place tenants who refuse to sign will have their assistance terminated. The reviewer will confirm that the appropriate family members listed on the HUD-50059 have signed the HUD-9887 and HUD-9887-A forms at move-in, initial certification, and each annual recertification. Family members will sign on the same form HUD-9887, not individual forms. Each family member will sign a separate form HUD-9887-A. (See Handbook 4350.3 REV-1, Chapter 5, Paragraph 5-15 and Chapter 8, Paragraph 8-5.)

Question B.1: Have the social security numbers for all family members at least 6 years of age and older, or certification if no social security number, been verified and documented?

Section B. Verification

Families must disclose social security numbers for all family members six years of age or older and provide proof of the numbers reported in order to be eligible for occupancy and housing assistance. If a social security number has not been assigned to a family member, the applicant must sign a certification stating that no social security number has been assigned. (See Handbook 4350.3 REV-1, Chapter 3, Paragraphs 3-9 and 3-31, and Chapter 5, Paragraph 5-12.A.) The reviewer will verify that the file documentation shows that the family has disclosed and the O/A has verified the social security numbers for all family members age six or older or has received a certification for those family members who do not have a social security number. Documentation in the file does not have to be a copy of the social security card. Alternate methods of verification are acceptable. (See Handbook 4350.3 REV-1, Appendix 3, Acceptable Forms of Verification.)



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Question B.2: Has eligible immigrant status or citizenship been verified and documented? Only U.S. citizens or eligible non-citizens may receive assistance under the Section 8, Section 236, Rental Supplement, Rental Assistance Payments (RAP), and Section 202/8 programs. Declaration of citizenship or eligible immigrant status does not apply to the Section 202 Project Rental Assistance Contracts (PRAC), Section 811 PRAC, Section 202/162 Project Assistance Contracts (PAC), or Section 221(d)3 Below Market Interest Rates (BMIR) programs. (See Handbook 4350.3 REV-1, Chapter 3, Paragraph 3-12.) The reviewer will determine if the project being reviewed provides assistance under one of the programs listed above and is, therefore, required to have tenants declare their citizenship. If citizenship declaration is required, the reviewer will need to verify that all family members have declared their citizenship and the appropriate signed declaration forms are in the tenant file. If the family member(s) is a non-citizen immigrant, the reviewer will need to determine that the appropriate verification was completed with the Department of Homeland Security’s SAVE system. In the case of a “mixed” family, the reviewer will need to determine that the tenant’s rent and subsidy were calculated correctly. The reviewer should review the HUD-50059 to determine if the appropriate citizenship codes were used. The Member Eligibility Codes are: EC Individual is a citizen or national

EN Individual is a non-citizen with eligible immigration status

IC Ineligible non-citizen child of a family head or spouse

IN Member is an ineligible non-citizen IP Ineligible parent of a head of household or spouse

ND

No documentation submitted. For use when the family is receiving prorated assistance at admission. Member is treated as ineligible for proration purposes.

PV

Individual’s eligibility status is pending verification – documents have been submitted for use when the family is receiving prorated assistance at admission. Member is treated as eligible for proration purposes.

XX Individuals who are not counted as members of the family (i.e., foster children, live-in attendants, foster adults) HUD-50059 Relationship code of “F” or “L” for these individuals.



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Question B.3: Criminal and drug screening; sex offender registration have been verified and documented? O/As must include screening criteria in their tenant selection plan that prohibits admission of those who have engaged in drug-related or criminal activity. (See Handbook 4350.3 REV-1, Chapter 4, Paragraphs 4-7.C and 4-27.E.) The reviewer needs to verify that this screening criteria has been included in the tenant selection plan for the project and that there is evidence that the screening is being accomplished and applied consistently. Question B.4: Other screening as disclosed in tenant selection plan has been verified and documented? The reviewer will determine from the tenant selection plan whether or not other screening criteria is used at the project (e.g., credit history, rental history, and housekeeping habits). During the review of the tenant files, the reviewer will look for evidence that this screening is being accomplished and applied consistently. (See Handbook 4350.3 REV-1, Chapter 4, Paragraphs 4-7 and 4-27.) Questions B.5, B.6 and B.7: Have the following items been properly verified and documented: disability, student status and age? The O/A must verify the disability, age, or student status of family members in order to determine if the family qualifies for assistance and/or deductions. The deductions are used to determine adjusted income. The HUD-50059 field for Special Status Code must be completed to indicate that the family is entitled to receive the applicable deduction. The Special Status Codes are: E Elderly head, spouse, or co-head who is at least

62 years old as of the effective date of the certification. (Such individual must have one of the following Relationship Codes: H, S or K.)

S Full-time student who is at least 18 years old as of the effective date of the certification and who is not the head, spouse, or co-head. (Such individuals must have been identified by the Relationship Code D.)

H Family member who has a disability. (Such individuals must have one of the following Relationship Codes: H, S, K, or D.)

J Dependent whose custody is jointly shared by more than one family and who receives a dependent allowance along with a child care allowance where applicable.

C Dependent whose custody is jointly shared by more than one family but who does not receive



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a dependent allowance. Such a person’s child care expenses count toward the child care allowance.

K Dependent whose custody is jointly shared by more than one family and lives in the unit 50% or more of the time. Count for unit size and income limit purposes. This code must be paired with either a J or C code. If this code is not present, the dependent with the J or C code is not counted for unit size and income limit purposes.

The HUD-50059 Student Status field must be completed to indicate the eligibility under the rules for receiving Section 8 assistance of a student enrolled either as a part-time or full-time student at an institution of higher education. FUTURE CODE: The Student Status Code is: V Student, (either full or part-time) at an

institution of higher education who is eligible under the rules.

The reviewer will check the HUD-50059 Special Status Code and Student Status fields to see if any special status codes have been applied. They will then determine that the O/A has verified the family member’s disability, age, or student status and that the appropriate deductions were given in questions D.10 through D.14. (See Handbook 4350.3 REV-1, Chapter 5, Paragraphs 5-9 and 5-10.) The reviewer will check the HUD-50059 Student Status Code to see if the code has been applied. They will then determine that the O/A has verified that the student is eligible to receive Section 8 assistance. (See Handbook 4350.3 REV-1, Chapter 3, Paragraphs 3-13 and 3-33.)

Question C.1: Is the correct HUD model lease used? Section C. Lease

HUD has provided model leases to be used at subsidized projects. There are four model leases: (See Handbook 4350.3 REV-1, Appendix 4.)

• HUD-90105-a, Model Lease for Subsidized Programs (Family Model Lease) • HUD-90105-b, Model Lease for Section 202/8 or Section 202 PACs • HUD-90105-c, Model Lease for Section 202 PRACS • HUD-90105-d, Model Lease for Section 811 PRACS

The reviewer must determine which model lease is applicable to the program type being administered at the project under review and verify that the appropriate lease is being used. Lease addendums may be used for modifying the lease. (See Handbook 4350.3 REV-1, Chapter 6, Figure 6-2.)



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If a lease addendum is being used at the property to modify the lease, the reviewer will need the O/A to provide evidence that HUD or the CA has approved the modifications. (See Handbook 4350.3 REV-1, Chapter 6, Paragraph 6-12.) Question C.2: Is the original lease and subsequent leases or addendums signed by the O/A, head, spouse, co-head and all other adult members of the household? The lease and any lease addendums must be signed by the head of household, spouse, any individual listed as co-head, and all adult members of the household, as well as the O/A. (See Handbook 4350.3 REV-1, Chapter 6, Paragraph 6-5.B.2.) The reviewer will review the family composition on the HUD-50059 to confirm that the lease contains the appropriate signatures.

Question D.1: Were recertification notices provided within the required timeframes given?

Section D. Certification/Recertification Activities

O/As are required to provide written notices to tenants regarding the tenant’s responsibility to provide information about changes in family income or composition necessary to properly complete an annual recertification. The initial notice must be provided at the initial lease signing and at every annual recertification thereafter. First, second, and third reminder notices must be issued in accordance with HUD requirements. The reviewer must review the file to ensure that the proper notices were given and that the notices were given within the appropriate time frames. (See Handbook 4350.3 REV-1, Chapter 7, Paragraph 7-7.) Question D.2: Were certifications completed on time? The move-in certification must be completed and signed by the head, spouse, co-head and all adult family members and the O/A prior to the tenant moving in or on the day of move-in. Annual recertifications must be completed prior to the recertification anniversary date. Since the O/A is required to give the tenant a 30-day notice of an increase in his/her rent, recertifications should be completed 35 days prior to the recertification anniversary date. (See Handbook 4350.3 REV-1, Figure 7-3, Recertification Steps.) Tenants may also report changes that affect the total tenant payment or tenant rent and assistance payment for the tenant between required recertification dates. When this occurs, the O/A must prepare an interim recertification. (See Handbook 4350.3 REV-1, Chapter 7, Section 2.) The tenant files must contain the recertification notices addressed in question D.1, so that the reviewer can follow the O/A’s recertification process. When certifications are not completed on time, the reviewer must determine who caused the delay, the tenant or the O/A. Knowing who caused the delay is important because this affects whether or not the O/A is entitled to receive housing assistance back to the original recertification anniversary date. Reviewers must follow the guidance in Handbook 4350.3 REV-1,



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Chapter 7, Paragraph 7-8 for determining the effective date for changes in the TTP, tenant rent and assistance payment when the recertification is delayed. If an interim recertification is prepared, the reviewer needs to determine if the O/A processed it in a timely manner. Question D.4-D.9: Income The O/A must interview the applicant or tenant to gather all of the information relating to income, assets, and family composition. This information is needed to determine the annual income for the applicant or tenant family. There are several acceptable methods of verification. They are, in the order of acceptability: NOTE: Although use of EIV is not yet mandatory, O/As who are using the EIV data at the time of recertification or any other type of UIV should follow this order of acceptability.

• Up-front verification (UIV) using EIV data in conjunction with tenant supplied documents for current tenants.

• Third-party verification directly from the third-party source • Review of documents received from tenants • Family certification.

(See Part II, Paragraph E.2.f for information on the 5-year restriction included in the consent forms, HUD-9887 and HUD-9887-A, on requesting information through computer matching or from a third party source.) The reviewer will confirm that the file contains documentation of income and assets reported by the tenant family. An example of good documentation is the use of an income and asset checklist (see Attachment 4, Sample Eligibility, Income, and Deduction Checklist). The reviewer will confirm that the files contain the necessary verification forms to support the income and assets reported by the tenant family. (See Handbook 4350.3 REV-1, Chapter 5.) The income and asset information from the verification forms must agree with the information recorded on the HUD-50059 in the applicable income and asset fields. The HUD-50059 fields are: Total Assets, Total Income from Assets, Total Employment Income, Total Pension Income, Total Public Assistance Income, Total Other Income, Non-asset Income, and Annual Income Amount. If the verification forms and the amounts in the HUD-50059 fields do not agree, this will result in a rent calculation error. The reviewer must follow the interim error tracking requirements provided under a separate directive from this Guide for recording the error. The reviewer will record on the tenant file worksheet the income and assets reported by the O/A on the HUD-50059 and record on the form whether or not the income information on the HUD-50059 agreed with the verified file information. If not, the discrepancies must be identified.



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Questions D.10 – D.14: Deductions The deductions from income that the family may be entitled to receive are listed in questions D.10 through D.14. In order to determine whether the family is entitled to any of the deductions, the family composition and other information (e.g., age, fulltime student status, etc.) must be determined. The O/A must obtain third-party verifications to support any deductions or expenses. The reviewer will examine the HUD-50059 to determine if the family composition and other family information indicate that the family is eligible to receive any of the deductions (see Questions B.5, B.6, and B7 relating to Special Status Codes). Once the reviewer determines the deductions the family is eligible to receive, he/she will then ensure that the file contains the necessary third-party verifications and that all deductions have been calculated correctly. The reviewer will record on the tenant file worksheet the amounts reported on the HUD-50059 for deductions and expenses, along with the amounts supported by the third-party verifications. The verified deductions must agree with the HUD-50059 fields for deductions. If they do not agree, this will result in a rent calculation error. The reviewer must follow the interim error tracking requirements provided under a separate directive from this Guide for recording the error The HUD-50059 fields for deductions are: Dependent Allowance, Disability Expense, Medical Expense, and Elderly Allowance. (See Handbook 4350.3 REV-1, Chapter 5, Paragraph 5-10.) Question D.16: Was the correct unit rent used for rent determination? As part of the desk review, the reviewer should have determined the approved rents for the project from either the HUD-approved Rent Schedule (HUD-92458) or the housing assistance contract. The approved rents will be used to verify that the O/A is using the correct rents when calculating the assistance payment HUD will pay on behalf of the tenant family. The reviewer will compare the approved rents from the rent schedule or assistance contract to the applicable fields on the HUD-50059. The applicable fields are Contract Rent Amount, Utility Allowance Amount, and Gross Rent. If the reviewer finds a discrepancy in the rents used, this will result in an assistance calculation error. The reviewer must follow the interim error tracking requirements provided under a separate directive from this Guide for recording the error Questions D.17-D.24: Rent and subsidy calculations The rent calculation is based on the adjusted income for the family. The reviewer must determine if the rent was calculated according to the appropriate rent formula for the type of assistance the family is receiving (see rent formulas on Fact Sheet for Determining Rent, Attachment 1 or Handbook 4350.3 REV-1, Chapter 5, Exhibit 5-8). The reviewer will find the results of the rent calculation recorded on the HUD-50059 fields Total Tenant Payment, Tenant Rent, Utility Reimbursement, and Assistance



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Payment Amount. The reviewer must be familiar with the rent formulas for all of HUD’s assistance programs in order to determine that the correct rent formula was used in the rent calculations. The reviewer must determine what the family should have paid in the event that errors were found in calculating the income, asset, and deduction information or if the incorrect project rent or utility allowance was used. If the reviewer finds that the rent and assistance payments were calculated incorrectly, the error will be recorded on the Tenant File Error Summary, Attachment 8. Errors will be tracked and reported in accordance with the interim error tracking requirements provided under a separate directive from this Guide. When a project has a utility allowance the family may be entitled to receive a utility reimbursement. The reviewer will need to check the O/A records to verify that the utility reimbursement was paid to the family within 5 business days of receipt of voucher payment by the O/A. If the O/A fails to pay the utility reimbursement to the tenant, the O/A is in non-compliance with the utility reimbursement requirements. The reviewer must make this a finding on the written report. Projects with Section 8 assistance have a minimum rent requirement of $25.00. If the family is not paying the $25.00 minimum rent, the reviewer will need to verify that an exemption from paying minimum rent has been granted. Minimum rents do not apply to Section 202 PRAC, Section 811 PRAC, Section 202/162 PAC, Section 236, Rent Supplement, or Section 221(d)(3) BMIR projects. Question D.24: If applicable, has tenant entered into a written payment plan for monies due to the project? If the tenant has entered into a payment plan with the O/A for repayment of monies due the project, the reviewer should discuss with project staff the reason for the payment plan, determine if the tenant is in compliance with the plan and that any monies due HUD as a result of the payment plan are being returned as an adjustment on the monthly voucher. (See Handbook 4350.3 REV-1, Chapter 8, Paragraph 8-20.)

Section E. Billing

Question E.1: Does the assistance payment requested on the monthly billing (HUD-52670-A Part 1) agree with the assistance payment on the HUD 50059? The reviewer will obtain copies of the monthly billing requests that the O/A submitted to HUD or the CA. The reviewer will compare the amount requested on the monthly billing(s) for the unit/family with the amount listed in the HUD-50059 Assistance Payment field to determine that the O/A is requesting the correct amount. If the O/A is not requesting the correct assistance payment and if the CA did not make the correction to the voucher prior to payment, the reviewer will need to ensure that the O/A makes the appropriate adjustment to the voucher to correct this error. Question E.2: If required, have adjustments been made to the monthly billing?



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Because the O/A requests the assistance for Section 8, Section 202 PRAC, Section 811 PRAC and Section 202/162 PAC tenants in advance (e.g., the May voucher is due to HUD or the CA by April 10), O/As will need to make adjustments for activity that occurs during the month. Actions that may require adjustments are unit transfers, move-in, move-out, interim recertifications, and past due annual recertifications. The reviewer will need to determine whether an adjustment is required and verify that the adjustment was made and was calculated correctly. Move-out File Review Only Question F.7: Does the tenant move-out date on the voucher match the date the tenant vacated the unit? The date the tenant moved out of the unit should be recorded in the tenant file on documents such as the move-out inspection report or the notice provided to the tenant of the disposition of the security deposit. (See Handbook 4350.3 REV-1, Chapter 9, Paragraph 9-12.) The reviewer will need to determine whether an adjustment was required and verify that the adjustment was made and was calculated correctly using the date the tenant vacated the unit.

September 2008 Attachment 7. HUD-9834

Management Review for Multifamily Housing Projects

U.S. Department of Housing and Urban Development Office of Housing – Federal Housing Commissioner

OMB Approval No. 2502-0178 Exp. 09/30/08

Public Reporting Burden for this collection is based on the size of the project and the level of compliance and is estimated to average 8 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This form replaces form HUD-9838, Management Review for Unsubsidized Multifamily Housing Programs. This information is required by 24 C.F.R. 880.612, 24 C.F.R. 884.224, 24 C.F.R. 886.130, 24 C.F.R. 891.450, and/or the Regulatory Agreement. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. The information is used by HUD to evaluate the quality of project management, determine the causes of project problems, and devise collective actions to stabilize projects and prevent defaults. The information is gathered and recorded during a review of project operations. HUD does not ensure confidentiality to respondents.

Form HUD-9834 (04/07) Ref. HUD Handbook 4350.1, REV-1

and HUD Handbook 4566.2 RHIIP Rent & Income Determination Quality Control Monitoring Guide September 2008 For Multifamily Housing Programs

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ATTACHMENT 7 – HUD-9834 PURPOSE: To assess management and oversight of multifamily housing projects. INSTRUCTIONS: This form is to be completed by HUD staff, Performance Based Contract Administrators/Traditional Contract Administrators (CAs) and Mortgagees of Coinsured Projects (Mortgagees). The Management Review form consists of three parts: Desk Review, On-site Review with Addendums, and Summary Report. All Reviewers of subsidized projects must complete all Addendums (A, B & C). Reviewers of unsubsidized projects must complete Addendums B & C only. If any questions on any given form are not relevant to the program under review or if the information is not available, notate with “N/A”. Additional guidance regarding the management process can be found in HUD Handbooks 4350.1, REV-1 and 4566.2. A. Prior to On-Site Review

Complete Part I – Desk Review • To complete the Desk Review worksheet prior to the on-site visit, review the project files, system reports, other documents, and contact the HUD

representative for any unavailable information needed to complete the desk review. This portion of the review will assist the Reviewer in identifying potential problem areas. HUD staff must complete the entire Desk Review for subsidized projects. For unsubsidized projects, HUD staff/mortgagees must complete all applicable sections. CAs must complete the entire Desk Review except where noted “This question applies only to HUD Staff/Mortgagees.”

• Schedule a date for the on-site review with the owner/agent and confirm the review date in writing. The owner/agent should be given at least a two-week notice in writing and notified of the documents that need to be available the day of the review, as specified in Addendum C. Addendum C provides a list of documents notated by the Reviewer that the owner/agent must have available during the on-site review. Addendum C and Part A of Addendum B must be forwarded to the owner/agent with the letter confirming the scheduled on-site review. The Reviewer may request additional items as necessary.

B. Conducting the On-Site Review Complete Part II – On-Site Review • On-Site Reviews will be completed as follows:

(1) HUD staff and Mortgagees must complete all applicable questions in Part II. (2) CAs must complete all questions in Part II except where noted “This question applies only to HUD staff/Mortgagees.” (3) HUD staff completing a review of a project which is also reviewed by a CA will only complete questions not applicable to CAs.

• Use additional sheets as necessary to complete applicable questions. • Upon completion of the on-site review, the Reviewer will hold a close-out session with the owner/agent to discuss observations and conclusions.

C. After On-Site Review • The Reviewer will record deficiencies, findings and corrective actions. Findings must include the condition, criteria, cause, effect and required corrective

action. The condition describes the problem or deficiency. The criteria cite the statutory, regulatory or administrative requirements that were not met. The cause explains why the condition occurred. The effect describes what happened because of the condition. The corrective action provides what the owner/agent must do to eliminate the deficiency. The corrective action must include a requirement that the owner determine and correct not only the discovered errors and omissions, but also describe to the Reviewer how and what systems, controls, policies and procedures were adjusted or changed to assure that the errors and omissions do not reoccur. In completing the Report of Findings, the Reviewer should also indicate the target completion date.

• Complete Summary Report as follows: Based on the Report of Findings, the Reviewer will assess the overall performance for each applicable category. The Reviewer must indicate A (Acceptable) or C (Corrective action required) and include target completion dates (TCD) for all corrective action items. For those items not applicable, indicate “N/A” in the TCD column. For each of the seven major categories (A, B, C, D, E, F, and G), rate each category by checking Superior, Above Average, Satisfactory, Below Average, or Unsatisfactory. If a section was not completed, indicate “Not Rated”. After rating the individual categories, an overall rating must be assessed. This rating should be based upon the individual line items, the seriousness of the findings, and the ratings assigned in categories A through G. CAs will rate all sections except Section D. Section D is for HUD staff/Mortgagees only. Additional guidance for ratings can be found in HUD Handbook 4350.1, REV-1.

• Distribute the Summary Report and cover letter as follows: (1) Project Owner (original) (2) Management Agent (copy) (3) HUD office for PBCA reviews rated below average or unsatisfactory (4) HUD office for all TCA reviews

*A copy of the completed Management Review Report, form HUD-9834 and supporting documents must be maintained in the project file. • If a below average or unsatisfactory rating is determined, the owner/agent must be afforded an opportunity to appeal. Guidance on appeal procedures is

provided in HUD Handbook 4350.1, REV-1. • All Secure Systems users must document all required data in the Real Estate Management System (REMS).

D. Management Review Deficiency Follow up: • Reviewer must conduct follow-up activity until all corrective actions as required in the Summary Report have been completed. Enter applicable close-out

dates in REMS.






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NOTE: The Fair Housing and Equal Opportunity (FHEO) checklist has been included as part of this management review form; however no determination of compliance with applicable Fair Housing laws and regulations is included in the summary report. CAs must forward the original checklist (Addendum B) to HUD staff. HUD staff must maintain the original checklist in the project file and forward a copy to the Office of FHEO in the appropriate jurisdiction for review.

Date of On-Site Review:

Date of Report:

Project Number:

Contract Number:

Section of the Act:

Name of Owner:

Project Name:

Project Address:

Loan Status:

Insured HUD-Held Non-Insured Co-Insured

Contract Administrator:

HUD CA PBCA

Type of Subsidy Type of Housing Section 8 PAC Section 236 Section 221(d)(3)

BMIR

Rent Supplement RAP PRAC Unsubsidized

Family Disabled Elderly Elderly/Disabled Other (please specify)

For each applicable category, assess the overall performance by checking the appropriate column. Indicate A (Acceptable) or C (Corrective action required). Include target completion dates (TCD) for all corrective action items. For those items not applicable, place N/A in the TCD column.

A. General Appearance and Security A

C TCD General Appearance and Security Rating

Superior Above Average Satisfactory Below Average Unsatisfactory Not Rated

1. General Appearance 2. Security B. Follow-up and Monitoring of Project Inspections

A

C TCD Follow-up and Monitoring of Project Inspections Rating


3. Follow-Up and Monitoring of Last Physical Inspection and Observations

4. Follow-Up and Monitoring of Lead-Based Paint Inspection

C. Maintenance and Standard Operating Procedures

A

C TCD Maintenance and Standard Operating Procedures Rating


5. Maintenance 6. Vacancy and Turnover 7. Energy Conservation D. Financial Management/Procurement A

C TCD Financial Management/Procurement Rating


8. Budget Management 9. Cash Controls 10. Cost Controls 11. Procurement Controls 12. Accounts Receivable/Payable 13. Accounting and Bookkeeping E. Leasing and Occupancy A

C TCD Leasing and Occupancy Rating


14. Application Processing/ Tenant Selection 15. Leases and Deposits

16. Eviction/Termination of Assistance Procedures






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17. Tenant Rental Assistance Certification System (TRACS) Monitoring and Compliance

18. Tenant File Security

19. Summary of Tenant File Review

F. Tenant/Management Relations

A

C TCD Tenant Services Rating


20. Tenant Grievances 21. Provision of Tenant Services G. General Management Practices A

C TCD General Management Practices Rating


22. General Management Operations 23. Owner/Agent Participation 24. Staffing and Personnel Practices Overall Rating:

Superior Above Average Satisfactory Below Average Unsatisfactory

Name and Title of Person Preparing this Report: (Please type or print):

Name and Title of Person Approving this Report: (Please type or print):

Signature: _____________________________________________________________ Date:

Signature:______________________________________________________________ Date:

NOTE: If this review is conducted by a CA or PBCA as indicated above, the overall rating reflects a review as it relates to compliance with the Housing Assistance Payment Contract (HAP) only.






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SUMMARY REPORT – FINDINGS For each “C” item checked on the summary report, reference the appropriate citing, and target completion date. Findings must include the condition, criteria, cause, effect and required corrective action:

o The condition describes the problem or deficiency o The criteria cites the statutory, regulatory or administrative requirements that were not met o The cause explains why the condition occurred o The effect describes what happened because of the condition

Corrective actions are required for all findings. Item Number Finding Target Completion Date




form HUD-9834 (04/07)

Ref. HUD Handbook 4350.1, REV-1 and HUD Handbook 4566.2


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PART I. DESK REVIEW –The Reviewer must complete this section prior

to the on-site review using all relevant information in project files and HUD database systems. Questions on the desk review, which include category references, are linked to the on-site review. Category references on the desk review that relate to the on-site review must be considered when determining the category rating. Category references are marked following the applicable question (i.e. B3, E14).

If any questions on any given form are not relevant to the program under review or if the information is not available notate with “N/A”. 1. What is the most recent Physical Assessment Subsystem (PASS) score? B3 Enter PASS Score Date of REAC inspection

If required, has the project filed a certification that all items listed on the previous REAC inspection have been completed? If more than one inspection is of record, does the reviewer note repetitive defects? Yes No Comments: 2. Were Exigent Health and Safety (EH&S) conditions cited in the report? B3 Yes No Comments: 3. Have all latent defects been corrected? (This question applies only to newly constructed projects within the last 24 months.) (This question applies only to HUD Staff/Mortgagees.) Yes No N/A If not, list depository and amount of any construction escrows remaining.

Comments: Questions 4 through 6 only apply to subsidized family properties or elderly properties housing children under the age of six that were constructed prior to 1978. If the lead based paint inspection has been conducted and the information was documented on the previous management review, proceed to question 7. 4. Document year of construction for Lead-Based Paint compliance. (Obtain this information from the Physical Condition/PASS screen in REMS Open REAC Inspection Report, then open the PASS Physical Inspection Report. The year of construction can be found under Buildings/Units .) Date of Construction

(If constructed after 1977, proceed to question 7.)

5. Has a lead-based paint inspection been conducted? 4B Yes No Information Not Available Comments: 6. What were the results of the Lead-Based Paint Inspection/Evaluation? 4B Lead Found? Yes No If yes, is there a HUD approved lead hazard control plan? Yes No Comments 7. Is an Annual Financial Statement required? (If no, proceed to question 10). (This question applies only to HUD Staff.)

Yes No Comments:






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8. What was the most recent Financial Assessment Subsystem (FASS) score? (This question applies only to HUD Staff) Enter FASS Score

If financial reporting is not required determine why; and record in reviewer comments below. Comments: 9. Have the following reports been consistently submitted on a timely basis? (Look at multiple periods) Check the appropriate box for reports received and indicate whether or not the report. (This question applies only to HUD Staff/Mortgagees)

Annual Audited Financial Statement Yes No N/A Date last report was due: Date last report received:

Monthly Accounting Report Yes No N/A

Excess Income Report (HUD-93479, 80, 81) Yes No N/A Quarterly performance report for projects on flexible subsidy, modification, workout, etc. (9813c) Yes No N/A Annual operating budget (cooperatives) Yes No N/A

If the reports have been submitted, were they received in acceptable form? Yes No Comments: 10. Has owner corrected all findings on HUD financial and or Inspector General audits? (This question applies only to HUD Staff/Mortgagees) Yes No N/A List findings outstanding and determine whether remedial action is required to assure correction within established goals: Comments: 11. Do project operating expenses appear reasonable compared with similar projects? (This question applies only to HUD Staff) D10 Yes No Indicate latest OPIIS rating and check problem areas flagged by OPIIS.

Administrative Maintenance Utility Taxes and Insurance Financial Also, use OPIIS to conduct an expense comparison. 12. Does annual financial analysis or FASS printout indicate that project is free of actual or potential financial problems? (This question applies only to HUD Staff) Yes No For each of last 3 years, enter Profit (Loss) before depreciation (from the Statement of Profit & Loss). Year $ $ $

13. If the owner/agent has taken unauthorized distributions, reimbursements, or supervision fees, have these been repaid? (This question applies only to HUD Staff/Mortgagees) Yes No If no, indicate amount due project. 14. If required, have all required deposits to the residual receipts fund been made? (This question applies only to HUD Staff) Yes No Comments:






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15. Based on the last FASS submission, are accounts payable reasonably current? (This question applies only to HUD Staff/Mortgagees) D12 Yes No Indicate amount of accounts payable more than 60 days old 16. Does balance in security deposit trust account equal or exceed liability? (This question applies only to HUD Staff/Mortgagees) Yes No If no, explain how deficit will be funded. 17. If security deposits are invested in an interest-bearing account, is interest passed through to tenants or transferred to project account? (This question applies only to HUD Staff/Mortgagees) Yes No Comments: 18. Is the management fee paid to the agent in accordance with the management certification? (This question applies only to HUD Staff/Mortgagees) Yes No Comments: 19. Have the owner and managing agent executed and submitted an appropriate management certification (form HUD-9839A, B, or C) to HUD? (This question applies only to HUD Staff/Mortgagees) Yes No

If yes, please enter date of certification. Determine that the content of certification is consistent with present operations.

Comments: 20. Has the owner and management agent executed a management agreement in accordance with the management certification? (This question applies only to HUD Staff/Mortgagees) Yes No Comments: 21. Does the management agreement reflect HUD’s regulations and guidelines? (This question applies only to HUD Staff/Mortgagees)

Yes No N/A Comments: 22. Has management entity profile been submitted to HUD? (This question applies only to HUD Staff/Mortgagees) Yes No If yes, is it relevant to the agent’s organization and how it operates? Yes No Date of management entity profile 23. Do the Management Entity Profile and Management Certifications clearly describe the relationships and responsibilities of the owner and agent? (This question applies only to HUD Staff/Mortgagees) Yes No Determine if any are identity-of-interest contracts and compare the listing to the annual financial report.






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24. Have the principals and board members listed received HUD-2530 approval? (Request a list of all current principals and board members and check for HUD-2530 approval.). (This question applies only to HUD Staff.)

Yes No N/A Comments: 25. Is agent charging project for expenses for which the agreement requires agent to pay? (This question applies only to HUD Staff/Mortgagees) Yes No Comments: Questions 26 –29 apply to OAHP restructuring. If not applicable proceed to question 30. 26. Has the project’s mortgage been restructured? (This question applies only to HUD Staff.) Yes No If yes, is there a use agreement on the project? Yes No If there is a use agreement, does it require any owner certifications? Yes No

If owner certifications are required, have they been submitted timely? Yes No If applicable, has work required under the Rehabilitation Escrow been/is being completed according to schedule? Yes No

Comments: 27. Is the owner eligible for incentives? (This question applies only to HUD Staff) Yes No If yes, has the owner calculated those incentives correctly? (i.e., Capital Recovery Fee (CRF) and/or Incentive Performance Fee (IPF)) Yes No Comments: 28. Does the HUD billing statement (HUD-92771) indicate timely and accurate payments toward the Mortgage Restructuring Note? (This question applies only to HUD Staff)

Yes No Comments: 29. If an owner is in non-compliance with HUD business agreements, has the owner been notified by HUD within the required timeframes? (This question applies only to HUD Staff)

Yes No Comments: Questions 30 through 33 apply to Section 236 projects. If this is not a Section 236 project proceed to question 34. 30. Does the rental income generate excess income? (This question applies only to HUD Staff)

Yes No N/A Comments: 31. Has the owner/agent received approval to retain excess income? (This question applies only to HUD Staff) D13 Yes No Comments: 32. Was an annual report submitted for usage of retained excess income? (This question applies only to HUD Staff) D13 Yes No Comments:






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33. Are there any delinquent excess income payments due HUD? (This question applies only to HUD Staff) D13 Yes No If yes, is there a payment plan? Yes No Comments: 34. Are rent increase requests submitted to HUD promptly when needed? (This question applies only to HUD Staff) Yes No Review the timing of the last three rent increase requests and the results of the requests (approval, denial or modification to requested amount) and whether the rents are comparable to other neighboring properties. If a wide disparity exists, determine the cause of the difference. Does owner/agent generally provide sufficient documentation for rent increases? Yes No Comments: 35 Are contract renewals submitted to HUD promptly when needed? Yes No Comments: 36. Complete chart below. (This question applies only to HUD Staff/ Mortgagees)

Name of Reserve As of / / Held in Interest Bearing Account?

Total Per Unit Monthly Deposit

Replacement Reserve $ $ $ Yes No General Operating Reserve (Co-ops)

$ $ $ Yes No

Residual Receipts $ $ $ Yes No Other $ $ $ Yes No

a. Do balances in replacement or general operating reserve accounts appear adequate to meet future needs? Yes No If not, what action is recommended? b. Is only one account (i.e., the appropriate reserve or operating expense account) being billed for repairs that are eligible for reimbursement from the reserves? Yes No Comments: 37. Has the owner/agent performed analysis to determine future Reserve for Replacement needs when submitting a budget based rent increase? Yes No Comments: 38. If there is a utility allowance, when was the last adjustment approved? Effective date of last utility allowance adjustment:

If a utility allowance was approved was it implemented within 75 days as required by HUD? Yes No Comments: 39. What is the effective date of the last rent adjustment? Date of last rent adjustment:

Comments: 40. Is current approved rent schedule sufficient to meet project needs? (This question applies only to HUD Staff) Yes No Comments:






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41. Has a special rent increase been approved? Yes No N/A

If yes, please check the appropriate box. Insurance Taxes Utilities Security Service Coordinator Comments: 42. Are monthly rental subsidy vouchers submitted on time?

Yes No N/A Comments: 43. Is the owner/agent submitting tenant certification data to TRACS to support the voucher billings?

Yes No N/A Comments: 44. What is the term of the subsidy contract? Date of contract term:

Comments: 45. List vacancy activity for the past twelve months and indicate the number for each month. (This information can be obtained from the TRACS Voucher Detail Summary) C6.

JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC

46. Is there a Neighborhood Networks Center for the project? (Check REMS or other available source) (If no, answer “N/A” and proceed to 48)

Yes No N/A Comments: 47. If yes to question 46, does the Neighborhood Networks Center have a Strategic Tracking and Reporting Tool (START) Business Plan?

Yes No If yes, date HUD approved: If no, when will a START Business Plan be completed?

Projected date for START Business Plan: 48. Are there any unresolved findings from previous management reviews? If yes, specify in the comments section.

Yes No Comments:






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49. Review complaints, congressional inquiries, etc. received within the last 12 months regarding the overall management practices. Provide a general description below or attach applicable documentation. G22

Issue/Complaint Status






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Part II - ON-SITE REVIEW – Indicate by marking the appropriate box - Yes, No or N/A if not applicable. Provide comments as needed.

A. GENERAL APPEARANCE & SECURITY 1. General Appearance

1. Based on observation, are the project’s exterior and common areas (i.e., grounds, landscaping, parking lots, playgrounds, hallways, laundry room, elevator, garbage area, stairwells, management office) clean, free of graffiti, debris and damage?

Yes No N/A If no, provide location and describe condition(s). Comments:

2. Security a. Indicate whether any of the events below have been documented in the last twelve months and the frequency.

Event Frequency Event

Frequency

Break-Ins Arrests Vandalism Drug Activity Auto Theft Other (please specify): Personal Assaults None

Comments: b. Indicate which types of security measures, if any, are utilized on site.

Tenant Patrol Volunteer Organization Paid Car Patrol Paid on-site Guard Police Patrol TV Monitor Drug Free Housing Plan Security Cameras Motion Sensors Crime Prevention Plan Community Policing Other (please specify)

None

Comments: c. Based on the answers provided in questions a and b above, what corrective actions, if any have been taken by the owner/agent? Comments: d. Has the owner/agent requested a rent increase based on increases in security costs?

Yes No If yes, indicate security measures taken. Comments:

B. FOLLOW-UP & MONITORING OF PROJECT INSPECTIONS 3. Follow-Up & Monitoring of Project Inspections and Observations (Sampling is at reviewer’s discretion to respond to questions a and b below)

a. Based on a sampling, if EH&S items were identified have the deficiencies been corrected and documented according to the owner/agent’s certification for the most recent REAC inspection?

Yes No N/A If no, provide explanation. Does the analysis show any repetitive or systemic problems? Yes No Comments:






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b. Based on a sampling of units and common areas, for all other deficiencies noted in the REAC inspection (other than EH&S), as applicable, verify that corrective actions have been taken. Have the deficiencies been corrected?

Yes No N/A If no, is there a schedule for correcting the deficiencies within a reasonable timeframe to comply with decent, safe, sanitary and good repair standards? Yes No Comments:

4. Follow-Up & Monitoring of Lead-Based Paint Inspection – The following questions only apply to subsidized family properties or elderly properties housing children under six years of age that were constructed prior to 1978. If constructed after 1977, indicated N/A for question a and b.

a. Is there a certification on file documenting the project has been certified to be free of lead-based paint or lead hazards? Note: If there is a certification, obtain a copy for the project file.

Yes No N/A Comments: b. Is the owner in compliance with the HUD approved lead hazard control plan as noted on the desk review?

Yes No N/A Comments:

C. MAINTENANCE & STANDARD OPERATING PROCEDURES 5. Maintenance a. Indicate below to confirm that there is a schedule for preventive maintenance/servicing for the items listed that are applicable.

Heating and A/C Equipment Water Heaters Carpets and Drapes Roof, gutter and Fascia Inspection Major Appliances Elevators Motor Vehicles Sewer lines Exterior painting Windows Recreational equipment Landscaping maintenance Other (please specify):

Comments: b. Is there a satisfactory inventory system for accounting for tools, equipment, supplies, and keys (serial numbers, bar codes, etc.)?

Yes No Comments: c. Has the owner/agent secured inventory items, such as appliances and tools, to prevent theft?

Yes No Comments: d. Does the owner/agent have a written procedure that explains the process for inspecting units?

Yes No If yes, review a copy. Identify employee responsible for conducting inspection: Name and Title: Comments: e. How often are units inspected? (At right, indicate the appropriate answer[s].)

Monthly Quarterly Semi-Annually Annually Move-In Move-Out Other (please specify): Comments: f. How are unit inspections documented? Please Describe:






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g. If deficiencies are noted during unit inspections, what is the procedure for correction? Please describe: h. What is the average number of days from move-out until the unit is ready for occupancy? Average Number of Days: Comments: i. Is there a written procedure for completing work orders?

Yes No If yes, review a copy. Comments: j. Is there a procedure in place to handle emergency work orders?

Yes No If yes, describe procedure: k. Is there a backlog of work orders?

Yes No If a backlog exists, indicate the current number of work orders: Number between 1-3 days: Number between 4-7 days: Number more than one week:

Comments: l. Who is provided copies of completed work orders? (Below, indicate all that apply.)

Tenant Tenant File Maintenance Staff Other (please specify)

Comments: m. Is there documentation by unit that indicates the date of purchase, manufacturer, model, and serial number for appliance purchases (i.e., ranges, refrigerators, furnaces, air conditioners, hot water heaters, etc.)?

Yes No Comments:

6. Vacancy and Turnover a. How many units were vacant on the date of the on-site visit?

Number of Vacant Units: Number Ready for Occupancy: Average Length of time for unit turnover:

Comments: b. Walk through at least two vacant units that are ready for occupancy. Assess and document unit readiness. Comments: c. Based on the interview with on-site staff, are any of the factors listed below contributing to vacancy problems? (Below, indicate all that apply.)

Security Problems Non-competitive Amenities Inadequate Marketing Project Reputation Poor Maintenance Rents too High Location Lack of Demand Tenant/Management Relations Other (please specify) Bedroom Mix/Size (If yes, indicate which bedroom sizes are hard to rent)






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Comments: d. Based on the responses in questions a, b and c, what actions are being taken by the owner/agent to resolve the issue(s)? If not applicable, proceed to question 7. Please describe:

7. Energy Conservation Has management attempted to reduce energy consumption?

Yes No (Indicate all that apply.)

Caulking and weather-stripping Conversion to individual metering Storm doors and windows Consumer education Water saver devices Extra insulation Assessment of Utility Rate Schedule Other (please specify)

None

Comments:

D. FINANCIAL MANAGEMENT/PROCUREMENT (This section applies only to HUD Staff and/or Mortgagees as indicated. CAs may proceed to Section E.)

8. Budget Management a. Does the owner/agent’s staff have access to the current operating budget to monitor and control expenses?

Yes No N/A Comments: b. Is an operating budget prepared annually and approved by the owner?

Yes No N/A If yes, obtain a copy of the current year’s budget. Comments: c. Are monthly or quarterly reports prepared by the owner/agent indicating variances between actual income and expenses versus budgeted income and expenses?

Yes No N/A Comments: d. If this is a 202 or 811 project, does the owner/agent maintain a current annual budget? (This questions applies only to HUD Staff)

Yes No N/A If yes, is it available on-site? Yes No Comments:

9. Cash Controls a. Are collections deposited on the day received or, pending deposit, are they properly controlled?

Yes No Comments: b. Are adequate controls over cash accepted?

Yes No Check controls used.

Pre-numbered rent receipts Bank collections Safe Lock box Comments: c. Do different persons handle bank deposits and accounts receivable, or is an alternative safeguard used?

Yes No Indicate Names and Titles:






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Comments: d. Are all disbursement checks prenumbered, properly identified with account numbers and supported by vouchers or invoices?

Yes No Comments: e. Is the supply of unused checks adequately safeguarded or under the custody of persons who do not sign checks manually, control the use of facsimile signature plates, or operate the facsimile signature machine?

Yes No Comments: f. Are funds (i.e., receipts, disbursements, petty cash, etc.) periodically checked on a surprise basis by a responsible official (other than site employees)?

Yes No Comments: g. Are bank statements reconciled promptly upon receipt by someone other than check signer and by one who has no cash receipt or disbursement function?

Yes No Comments:

10. Cost Controls a. Are bills (including mortgage payment) paid in sufficient time to avoid late penalties?

Yes No N/A Comments: b. Are operating expenses (including taxes and utilities) periodically reviewed to assure that project is paying the lowest possible rate?

Yes No N/A If yes, give recent example.

11. Procurement Controls a. What is the procedure used to obtain and award contracts? Describe procedure: b. Are bids obtained prior to awarding contracts? (Review contracts and determine if bids were obtained and, if the lowest bids were not selected, obtain owner/agent decision for selection).

Yes No N/A Comments: c. Is there a written procedure for checking the quality of work performed by a contractor prior to authorizing payment?

Yes No Comments: d. Is there a procedure to assure that the individual authorizing contracted work/services is not the same individual authorizing payment?

Yes No Comments:






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e. Who is the responsible person charged with inspecting the quality of work performed by contractors prior to payment? Please indicate name and title: f. Does the project maintain a list on outside contractors?

Yes No Comments: g. Are vendor bills paid in time to obtain maximum trade discounts?

Yes No Comments: h. Is there any indication that real or personal property has been subtracted from the mortgaged premises without the permission of the Department?

Yes No Comments: i. Below, check services currently contracted with outside contractors and identify name of contractor and annual amount of contract. (Indicate (by asterisk) whether there is an identify-of-interest relationship between the contractor and the owner/agent)

Service Name of Contractor Annual Contract Amount Elevator

$

Exterminating

$

Apartment Cleaning

$

Heating and A/C

$

Plumbing

$

Security

$

Trash Collection

$

Decorating

$

Grounds

$

Other

$

Comments:

12. Accounts Receivable/Payable a. Complete the following as of end of last month. Cash $ Accounts Receivable $ Accounts Payable $

Are tenant accounts receivable within acceptable limits (10% of one month’s rent potential)? Yes No

Amount of receivables above is Of this amount, $

% of monthly rents due from tenants.

is more than 30 days past due.

Comments: b. Does procedure for write-off of bad debts appear reasonable?

Yes No Comments:






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c. Has annual “write-off of tenants’ accounts receivable for the last two fiscal years been less than 1% of gross rents due from tenants?

Yes No Comments: d. Are accounts payable reasonably current?

Yes No Indicate amount of accounts payable more than 60 days old: $

What are the owner/agent plans to do to reduce outstanding payables? Comments:

13. Accounting and Bookkeeping a. Are books and records maintained as required by HUD Handbook 4370.2 (Chapter 4) and 24 CFR Part 5?

Yes No N/A Check books of accounts maintained. Indicate where books may be examined. O – owner’s office; A – agent’s office; P – project site

General Ledger ( ) Rent Receivable Ledger ( ) General Journal ( ) Cash Receipts Journal ( ) Cash Disbursements Journal ( ) Accounts Payable Journal ( )

b. Are all required project accounts in the name of the project in a federally insured account?

Yes No Comments: c. Are operating funds, security deposits, reserve funds, and flexible subsidy funds maintained in separate accounts and properly secured for authorized use?

Yes No Comments: d. Does the mortgagor make frequent postings (at least monthly) to the ledger accounts?

Yes No Comments: e. If applicable is owner adhering to HUD-approved repayment Plan? (i.e., loan from reserve for replacement, 236 excess income, capital improvement loan, etc.)

Yes No Comments: f. Is centralized accounting used for disbursements?

Yes No If yes, are only HUD-insured projects in the pool? Yes No Comments: g. If centralized accounting is used, has it been approved by HUD

Yes No N/A Comments: h. If centralized accounting is used, is it being operated in accordance with HUD’s approval?







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i. If the trust account is part of a centralized disbursement account, are only HUD-insured projects in that account? Yes No

If yes, is the project’s balance transferred to the project account at least once monthly? Yes No Comments: j. If there are automobiles and/or charge cards charged to the project, are the titles in the name of the project?

Yes No If yes, do they have HUD approval? Yes No Comments:

E. LEASING AND OCCUPANCY (This Section does not apply to Mortgagees) 14. Application Processing/Tenant Selection

a. Does the application form contain sufficient information to determine applicant eligibility Yes No

Comments: b. Is there an arms length procedure between the person who denies the applicant and the applicant appeal reviewer?

Yes No Comments: c. Has the owner/agent leased a Section 8 unit to a police officer or security personnel who is over the income limits for the project?

Yes No If yes, has HUD or CA authorized the admission? Yes No Comments: d. Does the owner/agent have a written tenant selection plan?

Yes No If yes, does the plan include all required criteria as stated in the Handbook 4350.3 REV-1? Yes No Comments: e. Does the project maintain a waiting list of prospective tenants?

Yes No N/A If yes, does the list include all required elements as stated in Handbook 4350.3 REV-1? Yes No Comments: f. List number of applicants on the waiting list for the types of units below. 0 BR 1 BR 2 BR 3 BR 4 BR Other:

Comments: g. Were the applicants selected in proper order from the waiting list?

Yes No Comments:






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h. Is documentation available to show that the owner/agent is leasing not less than 40% of the Section 8 units that become available for occupancy in the previous fiscal year to extremely low-income families?

Yes No N/A If yes, please review and obtain a copy. Comments: i. What steps has the owner/agent taken to market to extremely low-income families? (If not applicable, proceed to question j.) Please describe: Comments: j. Does the advertising program comply with the existing affirmative fair housing marketing plan?

Yes No Comments: k. Is the affirmative fair housing sign posted in the rental office?

Yes No Comments: l. Is the fair housing logo included in published advertising materials?

Yes No Comments:

15. Leases and Deposits a. Have changes have been made in the model lease?

Yes No N/A If yes, has the lease in use been approved by HUD? Yes No Comments: b. Aside from rents and security deposits, what other charges are assessed (i.e., replacement keys, lockouts)? List the type and amount of any of these charges. Comments: c. If other charges aside from rents and security deposits are assessed, have they been approved by HUD?

Yes No Comments: d. Are rents collected in accordance with the provisions of the lease?

Yes No Comments: e. Is the policy for late fee assessment in compliance with the Handbook 4350.3 REV-1?

Yes No Comments:






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f. Are damages properly identified and charged to tenants? Yes No

Comments:

16. Eviction/Termination of Assistance Procedures a. Are tenants notified of termination of tenancy in accordance with HUD requirements?

Yes No N/A Comments: b. Are eviction procedures initiated timely, when warranted?

Yes No N/A Please document the following: Number of evictions completed during the last 12 months. Average cost per eviction $

Eviction handled by: Owner/Agent Attorney on staff of Owner/Agent Attorney on contract Attorney on call

Comments: c. Are tenants notified of termination of assistance in accordance with HUD requirements?

Yes No N/A Comments: d. Is the termination of assistance initiated timely when warranted?

Yes No N/A Reason(s) for termination of assistance: Comments:

17. TRACS Monitoring and Compliance a. Is the owner/agent using the TRACS queries to review and monitor their transmission?

Yes No Comments: b. Is the owner/agent following up and correcting TRACS deficiencies?

Yes No Comments:

18. Tenant File Security a. Are the files locked and secured in a confidential manner?

Yes No Comments: b. Is access to tenant file information limited to only authorized staff?

Yes No Comments: c. Who is authorized to have access to the tenant files? Indicate Name(s) and Title(s): Comments:






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d. Is the owner/agent maintaining tenant files according to HUD’s document retention requirements? Yes No

Comments: e. Is the owner/agent properly disposing of tenant records (shred, burn, pulverize etc.)?

Yes No Comments:

19. Summary of Tenant File Review This section applies only to subsidized projects and should be completed after the tenant file reviews (See Addendum A.) The minimum file sample should include review of files for new move-ins, recertifications, at least one Reject Applicant file, and at least one Terminated/Move-out Tenant file. In order to review specific functions (utility reimbursement, pet rules/deposits, minimum rents, etc.) it may be necessary to target a portion of the files reviewed to specific tenant families. The reviewer should adjust the tenant file sample to meet the needs of the review. Number of Units Minimum File Sample 100 or fewer 5 files plus 1 for each 10 units over 50 101-600 10 files plus 1 for each 50 units or part of 50 over 100 601-2000 20 files plus 1 for each 100 units or part of 100 over 600 Over 2000 34 files plus 1 for each 200 units or part of 200 over 2,200 For each question, only answer “Yes” if the files reviewed are acceptable. Answer “No” if the files are not acceptable and note the number of files with deficiencies utilizing the tenant file worksheet, Addendum A

Number of Files Reviewed =

(Please note: There is no maximum number of files to be sampled)

a. Tenant Files and Records i. Are the tenant files organized and properly maintained?

Yes No Number of Files with Deficiencies:

Comments: ii Do the files contain all documentation as required in Handbook 4350.3 REV-1? (At right, indicate the documents missing in the file.)

Yes No Documents Absent from File: Comments:

b. Application/Tenant Selection i. Were the applications in the files signed and dated by applicant?


Comments: ii. Was screening conducted in accordance with the Tenant Selection Plan?


Comments: iii. Were the unit sizes appropriate for household composition at the time of this tenant file review?


Comments:






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iv. If a household was ineligible at move in, were exceptions granted? Yes No N/A

Number of Files with Deficiencies:

Comments:

c. Lease i. Were the correct model leases used?


Comments: ii. Were the leases signed and dated by all required parties?


Comments: iii. Were the applicable attachments attached to the lease?


Comments: iv. Were security deposits collected in the correct amount for the program?


Comments: v. Were pet deposits within acceptable range and payment installments allowed?

Yes No N/A Number of Files with Deficiencies:

Comments:

d. Certification/Recertification Activities: i. Were recertification notices issued in accordance with HUD requirements?


Comments: ii. Were certifications completed on time?


Comments: iii. Were all necessary verifications completed and properly documented?







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Comments: iv. Were income and deductions calculated correctly prior to data entry?


Comments: v. Did income information on the tenant certifications agree with verified file information?


Comments: vi. If tenants were granted a hardship exemption as part of the minimum rent, was the exemption applied correctly?


Comments: vii. Were notices provided to tenants when their portion of rent increased in accordance with HUD tenant notification requirements?


Comments: viii. Were the correct contract rents used for determining subsidy paid on behalf of tenants?


Comments: ix. If tenants are paying their own utilities, were the current certifications reflecting the correct utility allowances?


Comments: x. Were utility reimbursement checks distributed within 5 business days of receipt of the housing assistance payments?


Comments:

e. Voucher Billing i. Were there any deficiencies noted in the tenant file review that resulted in over payment or under payment of subsidy?


Comments: ii. For the move-in/ move-out tenant file review, did the owner/agent make the appropriate voucher adjustments?


Comments:






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f. Move-In Files

i. Were proper income limits used for determining eligibility at move-in? Yes No N/A

Number of Files with Deficiencies:

Comments: ii. Did the files contain move-in inspections?


Comments: iii. If the files contained move-in inspections, did the owner/agent and tenant sign and date?


Comments:

g. Move-Out Files i. Did tenants provide written notice of intent to vacate in accordance with the HUD model lease?


Comments: ii. Were move-out inspections conducted?


Comments: iii. Were security deposits refunded in 30 days or less if required by state law?


Comments: iv. Were tenants provided an itemized listing of charges against the security deposits?


Comments: v. If charges exceeded the security deposits, were the tenants billed for the balances?


Comments:

h. Application Rejection Files i. Were applicants denied admittance in accordance with the Tenant Selection Plan?







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Comments: ii. Did rejection letters provide applicants the right to appeal?


Comments: iii. If applicants appealed application rejections, were appeals reviewed by someone other than person who made the original decision?


Comments: iv. Were appeals processed and applicants notified of appeal decision within 5 days of meeting?


Comments:

F. TENANT/MANAGEMENT RELATIONS (This Section does not apply to Mortgagees) 20. Tenant Concerns

a. Is there a written procedure to resolve tenant complaints or concerns? Yes No

If yes, review a copy. Comments: b. Does the procedure adequately cover appeals?

Yes No Comments: c. Is there an active formal tenant organization at this project?

Yes No Comments: d. Is tenant involvement in project operations encouraged?

Yes No Comments:

21. Provision of Tenant Services a. What social services are provided by either project or neighborhood, which meet the tenants’ needs? (Below, indicate services available and identify entity providing the service (i.e., city/county/state, church/school, community groups, etc. and any cost to project.)

Service Provider Financial Source Child Care Recreation Health Care Energy Conservation Vocational Training/Job Training Meals Financial Counseling Substance Abuse Counseling Service Coordinator Neighborhood Networks Center






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Other (please specify)

b. Is there a Service Coordinator for the project? (If there is no Service Coordinator, proceed to question f)

Yes No N/A Comments: c. Is the Service Coordinator’s office clearly identifiable and private?

Yes No Comments: d. Are the Service Coordinator’s files kept secure and confidential?

Yes No Comments: e. Does the Service Coordinator maintain a directory of service agencies and contacts and made available to all parties?

Yes No Comments: f. If there is a Neighborhood Networks Center as indicated on the Desk Review, what is the status of operations? (If there is no Neighborhood Networks Center, question h)

Open for Business Temporarily Closed – State the date the center will reopen: Permanently Closed – State the date the center closed:

Comments: g. What types of programs are offered at the Neighborhood Networks Center?

GED Adult Basic Education Computer Classes Job Training Job Placement Homework Assistance English as a Second Language Other (please specify)

Comments: h. The Department allows owners and their agents to provide services related to renter’s insurance products. Does the owner/agent offer such services? If the owner/agent offers no such service, proceed to Section 22.

Yes No Comments: i. HUD policy prohibits an owner/agent from evicting tenants if delinquent in renter’s insurance payments. How does the owner/agent deal with unpaid renter’s insurance? Please explain the process: Comments: j. Review the renter’s insurance information provided to tenants. Does the information provided to tenants clearly indicate that purchasing insurance is optional and not required as a condition of occupancy?







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G. GENERAL MANAGEMENT PRACTICES 22. General Management Operations

a. Have the complaints, as noted on the Desk Review, been satisfactorily resolved? Yes No N/A

Comments: b. Is the project staff able to adequately perform management and maintenance functions?

Yes No Comments: c. How does the owner/agent implement HUD changes in policies and procedures? Describe the process: Comments: d. Does owner/agent have a formal ongoing training program for its staff? Yes No N/A If yes, indicate types of training used and the frequency.

Type Frequency On-Site

HUD Seminars

Energy Conservation

Industry/Association Training

Local Colleges

Other (please specify) Comments: e. Are reports submitted to the owner from the management agent? (This question applies only to HUD Staff/Mortgagees)

Yes No Comments: f. Are there signs enabling persons to locate the office?

Yes No Comments: g. Are after hours/emergency telephone numbers posted?

Yes No Comments: h. List current insurance coverages (property, liability, Directors and Officers, workman’s compensation, automobile). (Check to make sure that HUD is listed as an additional loss payee, if applicable. Also, check to make sure that the insurance policy is in the name of the mortgagor entity.) (This question applies only to HUD Staff/Mortgagees)

Type

Basic Coverage Annual Premium

Property

Liability







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Comments: i. Does the owner/agent have a fidelity bond? (This question applies only to HUD Staff/Mortgagees)


23. Owner/Agent Participation (This section applies only to HUD Staff/Mortgagees. CAs may proceed to24.) a. If project is owned by a cooperative or nonprofit entity, does Board of Directors meet regularly and provide minutes?

Yes No N/A Comments: b. Review copies of the minutes. Does a review of the minutes indicate compliance with HUD’s business agreements? Yes No N/A Comments: c. Does owner/agent have a system or procedure for providing field supervision of on-site personnel?


24. Staffing and Personnel Practices a. Has management made an effort to employ tenants in accordance with Section 3 of the Housing and Community Development Act of 1968?

Yes No Comments: b. List all on-site staff charged to the project. (Use additional sheets if necessary).

Staff Person Date Hired % of Time Charged to Site

Annual Salary Unit Size Is the Employee Receiving Subsidy?

Is the Employee occupying a Non-Income Producing Unit?

Yes No Yes No

Yes No Yes No

Yes No Yes No

Yes No Yes No

Yes No Yes No

Comments: c. Does the staffing chart above match Part D of the Rent Schedule, form HUD-92458 as it relates to non-income producing units? (HUD staff only)

Yes No Comments:

ADDENDUM A OMB Approval No. 2502-0178

Exp. 09/30/08

form HUD-9834 (04/07)



7-30

ATTACHMENT 7A – ADDENDUM A

Tenant File Review Worksheet

Instructions: Review the appropriate number of tenant files and complete this worksheet for each file reviewed. Indicate the initial move-in date in the appropriate box. Indicate by marking the appropriate box (Yes, No, or N/A) for each document available in the tenant file. For move-out and applicant rejections files, reviewer should only complete the pertinent sections. Name of Reviewer: Type of Review:

Applicant Rejection Tenant Move-In Tenant Move-Out Certification/Recertification Effective date of certification(s) reviewed: If Certification/Recertification, indicate certification type: Certification Type: Initial Annual Interim Other Family Name:

Unit Number:

Move-in Date:

Bedroom Size: 0 Bedroom 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 or more Bedrooms

A. HOUSEHOLD INFORMATION 1. Is the application complete, including the date and time received by the owner/agent?

Yes No Comments:

2. Are the household members identified correctly? (head, spouse, dependent, co-head, other adult(s), live-in aide)

Yes No Comments:

3. Is the unit size appropriate for household? Yes No Comments:

4. Was household income eligible at move-in? (This question applies only to a tenant file move-in review.)

Yes No Comments: Over income? Low income? Very low income? Extremely low income?

5. If household was not income eligible at move-in, was an exception granted?

Yes No Comments:

6. Is the lead-based paint acknowledgement in the file?


7. Does the file contain the ethnicity and racial Data Certification as provided to the owner/agent?

Yes No Comments:

8. Have the HUD-9887/9887-A Consent Forms been signed by head, spouse, co-head regardless of age and family members at least 18 years of age?

Yes No Comments:

9. Was the HUD-9887 Fact Sheet provided to the tenant? Yes No Comments:

10. Does the file contain the Resident Rights and Responsibilities acknowledgement?

Yes No Comments:






7-31

B. VERIFICATION Have the following items been properly verified and documented? 1. Social security numbers for all family members at least 6 years of age and older or certification, if no SSN

Yes No Comments:

2. Eligible immigrant status or citizenship Yes No Comments:

3. Criminal and drug screening; sex offender registration Yes No Comments:

4. Other screening as disclosed in Tenant Selection Plan Yes No Comments:

5. Disability Yes No N/A Comments:

6. Student status Yes No N/A Comments:

7. Age Yes No N/A Comments:

8. Did the household certify whether or not they disposed of assets during the past two years?


C. LEASE 1. Is the correct HUD model lease used?

Yes No Comments:

2. Is the original lease and subsequent leases or addendums signed by the owner/agent, head, spouse, co-head, and all other adult members of the household?

Yes No Comments:

3. Are applicable attachments attached to the lease, e.g., house rules, pet rules, unit inspection report?

Yes No Comments:

4. If security deposit is required, was it correct? If required, enter amount here:


5. If pet deposit required, was it correct? If required, enter amount here:


6. If pet deposit was paid in installments, was payment in accordance with the pet regulations?


7. Is the move-in inspection dated and signed by tenant and owner/agent?

Yes No Comments:

8. Are Annual inspections documented in file? Yes No Comments:

D. CERTIFICATION/RECERTIFICATION ACTIVITIES 1. Were recertification notices provided within the required timeframes?

Yes No Comments:

2. Were recertifications completed on time? Yes No Comments:

3. Is the certification signed and dated by the appropriate parties?

Yes No Comments:






7-32

All reported income and deductions verified and calculated correctly?

3rd Party Verification? Amount Reported on 50059

Did income information on the 50059 agree with verified file information? If no, comment on discrepancies identified

4. Wages Yes No $

5. Social Security Benefits Yes No $

6. Welfare/Public Assistance/TANF Yes No $

7. Other income Yes No $

8. Actual Income from Assets Yes No $

9. Imputed income when assets are greater than $5,000

Yes No $

10. Dependent Allowance Yes No $

11. Medical Expenses Yes No $

12. Disability Expenses Yes No $

13. Childcare Expenses Yes No $

14. Elderly/disabled household allowance Yes No $

15. Are all expenses/allowances claimed eligible under the HUD Handbook 4350.3 REV-1?

Yes No Comments:

16. Was the correct unit rent used for rent determination?

Yes No Comments:

Enter the reviewer verified amounts for the following:

Amount Reported on the 50059

Did income information on the 50059 agree with verified file information? If no, comment on Discrepancies Identified.

17. Total Tenant Payment $

$ Comments:

18. Tenant Rent $

$ Comments:

19. Utility Reimbursement $

$ Comments:

20. Assistance Payment $

$ Comments:

21. Is the tenant paying minimum rent? Yes No N/A Comments:

22. Has a hardship exception been granted for paying minimum rent?


23. Was a 30-day rent increase notice provided to tenant?


24. If applicable, has tenant entered into a written payment plan for monies due to the project?







7-33

E. BILLING 1. Does the assistance payment requested on the monthly billing (HUD-52670-A, Part 1) agree with the assistance payment on the 50059 data requirements?


2. If required, have adjustments been made to the monthly billing?


F. MOVE-OUT FILE REVIEW ONLY 1. Was there a move-out notice from tenant? Yes No Comments:

2. Was there a move-out inspection? Yes No Comments:

3. If there is a move-out inspection, is it dated? Yes No Comments:

4. Was the security deposit refunded to tenant within 30 days or in accordance with state/local laws whichever is shorter?


5. Was an itemized list of the damages and charges provided to the tenant?


6. Were any additional charges paid by tenant? Yes No N/A Comments:

7. Does the tenant move-out date on voucher match the date the tenant vacated unit?

Yes No Comments:

G. APPLICANT REJECTION REVIEW ONLY 1. Was the reason the applicant was denied admittance in accordance with the Tenant Selection Plan?

Yes No Comments:

2. Did the rejection letter provide the applicant the right to appeal?

Yes No Comments:

3. If the applicant appealed, was the appeal reviewed by someone other than the person who made the original decision?


4. Was the appeal processed and applicant notified of appeal decision within five days of the meeting?



Office of Fair Housing and Equal Opportunity And

Office of Multifamily Housing Checklist for On-Site Limited Monitoring and Section 504 Reviews

ADDENDUM B

form HUD-9834 (04/07)



7-34

ATTACHMENT 7B – ADDENDUM B Multifamily Housing (Housing) staff or Performance-Based Contract Administrators/Traditional Contract Administrators (CA) must complete this Checklist when conducting on-site management reviews of subsidized and unsubsidized multifamily housing projects. The questions on this checklist cover topics that the Housing staff or CA can be expected to answer and is not intended to cover the full range of civil rights concerns. NOTE: This document does not require the Reviewer to make a determination of civil rights or Section 504 compliance. The Checklist is divided into four parts. Part A: Occupancy/Accessible Units/Program Accessibility (This section, along with instructions, must be forwarded to the owner/agent for completion prior to the on-site review. This document must be included in the Documents Reviewer Should Obtain from Owner. See Part D) Part B: Limited On-Site Monitoring Review (The Reviewer must complete this section during the on-site management review of all projects.) Part C: Section 504 Review (The Reviewer must complete this section during the on-site management review for all federally-assisted projects.) Part D: Documents Reviewer Should Obtain from Owner/Agent (during the on-site management review). Please Note that a “No” response to any question does not necessarily mean there is a fair housing/civil rights/Section 504 violation.

7

Project Name:

FHA/Project#

Section 8/PAC/PRAC# ADDENDUM B

form HUD-9834 (04/07)



7-35

To be completed by the Reviewer

Name of the Owner/General Partner:

Address of Owner/General Partner:

Name of Management Agent:

Address of Management Agent:

Type of Development: Cooperative Elderly Only Disabled Only Elderly/Disabled Family Other(Specify)

Total Number of Units: Total Subsidized Units:

Type of Federal Financial Assistance (check all that apply): Section 8 Section 202 Section 202/8 Section 202/PAC Section 202 PRAC Section 811 Section 221(d)(3)BMIR Section 236 Other

Number of Units of Each Size: 0 BR 1 BR 2 BR 3 BR 4 BR 5 BR Other (Specify)

Resident Manager’s Unit: Yes No Date of First Occupancy:

Service Coordinator Employed By Project: Yes No Reviewed by: Housing PBCA CA Reviewer:

Date:

Phone:

This Section is for Multifamily Housing Staff only: After a review of the information provided by the owner/agent in Part A, the following as been determined:

The owner/agent is in compliance with Title VI, Subtitle D of the Housing and Community Development Act of 1992 Possible noncompliance with Title VI, Subtitle D of the Housing and Community Development Act of 1992. Referred to the

local Office of Fair Housing and Equal Opportunity for additional review and appropriate action.

Title VI, Subtitle D of the Housing and Community Development Act of 1992 - Not Applicable Reviewed By: _________________________________________________________ (Name and Title)

Project Name:

FHA/Project#


form HUD-9834 (04/07)



7-36

PART A OCCUPANCY/ACCESSIBLE UNITS/PROGRAM ACCESSIBILITY

Authority: Section 504 of the Rehabilitation Act of 1973 (24CFR Part 8) Fair Housing Act/Title VIII Regulations (24 CFR Part 100.200) Uniform Federal Accessibility Standards (UFAS) (24 CFR Part 40) Regulatory Agreement

For this Section, the reviewer must forward the form along with the instructions for completion to the owner/agent prior to the on-site review. For subsidized projects, the owner/agent must complete the project information above and the information in Sections I, II, and III below. (See attached instructions.) For unsubsidized projects, the owner/agent must complete the project information above and Sections I and II only. Section III consists of Section 504 compliance, which does not apply to projects that do not receive federal financial assistance. The reviewer will obtain the completed form from the owner/agent during the on-site review.

SECTION I – OCCUPANCY

1. This property was designed primarily for: Exclusively Elderly

Exclusively Disabled

Elderly and Disabled

Family

2. Indicate the number of units currently occupied by client groups below

Exclusively Elderly - Exclusively Disabled -

Elderly/Disabled -

Near-Elderly Disabled -

Family -

3. Is there a use agreement or any other document that indicates that this project must serve only elderly tenants? ___

Yes No Unknown If yes, specify type of document: Effective Date: (Please attach a copy of the document(s) indicated above.)

4. If this project is a “covered Section 8 housing project” (see instructions), is there an occupancy preference for the elderly in accordance with Section 651 of Title VI, Subtitle D of the Housing and Community Development Act of 1992? (Refer to HUD Handbook 4350.3, REV-1)

Yes No If No, proceed to question 5. If yes, please indicate: a. the date of the elderly preference: b. the number of units that must be reserved for occupancy by non-elderly persons with disabilities

c. the date used to determine the number of units reserved for non-elderly persons with disabilities , and,

5. Is there an occupancy restriction for the elderly in accordance with Section 658 of Title VI, Subtitle D of the Housing and Community Development Act of 1992? (Refer to HUD Handbook 4350.3, REV-1)

Yes No 6. Total Number of Units Exclusively

for the Elderly

7. Total Number of Units Exclusively for Persons with Disabilities

8. Total Number of Units that must be occupied only by Non-Elderly Persons with Disabilities

I certify that this information is true and accurate.

Warning: HUD will prosecute false claims and statements. Convictions may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802) Signature of Owner

Date:

Project Name:

FHA/Project#


form HUD-9834 (04/07)



7-37

SECTION II – ACCESSIBLE UNITS

Distribution of all wheelchair and other accessible units in the project.

Bedroom Size 0 1 2 3 4 5 Other Total 1. All units

2. Total units with project-based rental assistance

3. Mobility accessible units

4. Vision and/or Hearing accessible units

*5. (Total Accessible Units)

6. Number of persons on waiting list who have requested accessible units

7. Number of accessible units occupied by elderly or family tenants

8. Number of accessible units occupied by non-elderly tenants with disabilities who require the features of the unit

9. Number of accessible units occupied by elderly tenants with disabilities who require the features of the unit

10. Percentage of Total Units with Project-Based Rental Assistance (Total line 2 divided by Total line 1 x 100)

%

11. Percentage of Total Units that are mobility accessible (Total line 3 divided by Total line 1 x 100)

%

12. Percentage of Total Units that are vision and/or hearing accessible (Total line 4 divided by Total line 1 x 100)

%

*If a unit is both mobility accessible and vision or hearing accessible, count the unit only once in line 5. I certify that this information is true and accurate. Warning: HUD will prosecute false claims and statements. Convictions may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802) Signature of Owner

Date:

Project Name:

FHA/Project#


form HUD-9834 (04/07)



7-38

SECTION III – PROGRAM ACCESSIBILITY SECTION 504 OF THE REHABILITATION ACT OF 1973

Section 504 Coordinator [24 CFR 8.53 (a)]

1. Does the recipient (as defined in 24 CFR 8.3) employ at least 15 employees?

Yes No

If “Yes”, answer Question 2.; If “No“ skip to Question 3.

2. Is at least one person designated to coordinate its Section 504 responsibilities?

Yes No N/A

If YES, provide the person’s name and telephone number below. Name:

Telephone Number:

Program Accessibility

Under Section 504, a federally assisted Housing Development is required to ensure that its program is usable by and accessible to persons with disabilities. This includes, but is not limited to, maintaining housing and non-housing facilities that are structurally accessible for persons with disabilities. The extent to which facilities must be structurally accessible depends in part, on whether they are new, altered, or existing. In addition, owner/agents are required to ensure that effective communication methods are used while communicating with persons with disabilities.

YES NO COMMENTS 3. Has the owner/agent taken steps to ensure effective communication using:

a. Qualified sign language and oral interpreters?

b. Readers? c. Use of tapes? d. Braille materials? Other (Describe): I certify that this information is true and accurate. Warning: HUD will prosecute false claims and statements. Convictions may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802) Signature of Owner

Date:

Project Name:

FHA/Project#


form HUD-9834 (04/07)



7-39

INSTRUCTIONS FOR COMPLETING PART A General instructions: Complete the project name, FHA/project number, and section 8/pac/prac information in the form header for each page: SECTION I - Owner/Agent must respond to all questions in this section. 1. Check the appropriate box that the project was designed to serve. (Check only one box. Do not leave blank.)

Exclusively Elderly - defined as a person 62 years of age or older. (This option is for projects that were designed to serve only elderly persons/families, i.e. Section 202 PRAC properties) Exclusively Disabled – Refer to HUD Handbook 4350.3, REV-1, Figure 3-6 for the applicable definition of disability. (This option is for projects that were designed to serve only persons with disabilities, i.e., Section 202/8 Projects for the Disabled and Section 811 projects. Please note that Section 202-8 Projects for the Disabled were developed to serve only non-elderly persons with disabilities. However, the Section 811 Projects were developed to serve persons with disabilities regardless of age as long as the minimum age requirement (age 18) is met.) Elderly and Disabled – defined as a property that serves the elderly and non-elderly persons with disabilities. (This option is for projects that were originally designed to serve only elderly persons/families, however the owner may have elected a preference under Section 651 of Title VI, Subtitle D of the Housing and Community Development Act of 1992 (Title VI-D) to reserve a percentage of units for non-elderly persons with disabilities in accordance with the provisions of Section 652, Title VI-D. See instruction 4 below for Section 651 definition.) Family – defined as all persons regardless of age or disability. (This option is for projects that serve all families with no restrictions or preferences as long as the minimum age requirement is met. Please note that family projects may have some units that are reserved for persons with mobility/vision/hearing impairments which would require the applicant to meet the needs of the unit.)

2. Enter the number of units occupied by each client group. (Please note that the term “near-elderly disabled” is defined as a person who is at least 50 years of age and below the age of 61 with a disability as defined in HUD Handbook 4350.3, REV-1.) (Enter zero “0” if there are no units occupied by the listed client group – do not leave blank)

3. If there is a use agreement or other document that references that the property must serve only elderly persons, answer “Yes”, indicate in the space provided, and attach a copy of the document(s) listed. If there is no use agreement or other document that references that the property must serve only elderly persons, answer “No”. If you are unclear on the term “use agreement,” or are not able to locate the “use agreement” or any other document that defines the occupancy of your project, the answer is “unknown”. Other documents include the regulatory agreement, loan commitment papers, financial documents, bid invitation, owner’s management plan, application for funding, and/or application for mortgage insurance. Please refer to HUD Handbook 4350.3, REV-1, paragraphs 3-17 and 3-18. If you do not have a copy of HUD Handbook 4350.3, REV-1, copies can be obtained from www.hudclips.org or the HUD Customer Service Center at (800) 767-7468. (Do not leave blank).

4. Section 651 of Title VI-D permits an owner to give *preference to elderly families if (1) the project was originally developed to serve the elderly and (2) it is a “covered Section 8 housing project.” “Covered Section 8 housing projects” are projects that were constructed or substantially rehabilitated pursuant to assistance provided under section 8(b)(2) of the United States Housing Act of 1937, as in effect before October 1, 1983, that are assisted under a contract for assistance under such section.

*A “preference” allows an owner to give priority to elderly persons when selecting tenants for occupancy. Section 651 of Title VI-D applies to the following programs:

• The Section 8 New Construction Program, 24 CFR part 880 • The Section 8 Substantial Rehabilitation Program, 24 CFR part 881 • The State Housing Agencies Program (insofar as it involves new construction and substantial rehabilitation) , 24 CFR

part 883 • The New Construction Set-Aside for Section 515 Rural Rental Housing Projects Program, 24 CFR part 884 • The Section 8 Housing Assistance Program for the Disposition of HUD-Owned Projects (insofar as it involves

substantial rehabilitation), 24 CFR part 886 subpart C “Covered Section 8 housing projects” do not include those developed with funding under the following programs:

Section 202; Section 202/8; Section 202 or 811 PRAC; Section 221 (d)(3); and/or Section 236.


Project Name:

FHA/Project#


form HUD-9834 (04/07)



7-40

If an owner elects a Section 651 preference for the elderly, the owner must reserve a number of units for non-elderly persons/families with disabilities. Title VI-D requires that the owner review the occupancy records on January 1, 1992 and October 28, 1992 (the date of enactment for Title VI-D), determine the number of non-elderly persons with disabilities that occupied units on those two dates, take the higher of the two numbers and then take the lesser of that number and 10 percent. For example, an owner has a “covered Section 8 project” that consists of 100 units and decides to implement an

elderly preference under Section 651. The first thing the owner has to do is find the occupancy records for January 1992 and see how many units were occupied by non-elderly persons or families with disabilities on January 1. In this example, it was 10 units.

Then the owner must find the occupancy records for October 1992 and see how many units were occupied by non-elderly

persons/families with disabilities on October 28th (the date of the enactment of the Act). In this example it was 15 units. To obtain the number of units that must be reserved for non-elderly disabled persons or families, the owner must take the higher

number of the two dates (January 1, 1992 and October 28, 1992), which, in this example is 15. Then the owner must compare that number with 10 percent of the total project units (in this example, it’s 10) and use the lower number for the number of units that must be reserved. Since 10 is less than 15, for this example the owner must reserve 10 units for non-elderly disabled persons or families. If an owner determines that there were no non-elderly persons or families occupying units on either January 1, 1992 or October 28, 1992, the required number of units to be reserved for non-elderly persons with disabilities would be zero (0). However, owners are encouraged to exceed the number of reserved units for non-elderly persons with disabilities if the need exists in the community.

Answer question 4 as follows: If there is an elderly preference in accordance with Section 651 of Title VI-D, answer “Yes”. If there is no preference provided to elderly families, answer “No”. (Do not leave blank). If yes, answer the following: o If there is an occupancy preference in accordance with Section 651, indicate the effective date of the preference. o If there is an occupancy preference in accordance with Section 651, indicate the total number of units that must be reserved

for non-elderly persons with disabilities based on the two dates above. o If there is an occupancy preference in accordance with Section 651, indicate which date (see above) was used to determine

the number of units that must be reserved for non-elderly persons with disabilities. 5. Section 658 of Title VI, Subtitle D of the Housing and Community Development Act of 1992 (Title VI-D) permits owners of “other federally assisted housing” to continue to restrict occupancy to elderly families in accordance with the rules, standards, and agreements governing occupancy in such housing in effect at the time the housing was developed. If (A) the project was originally developed to serve the elderly and (B) the project has continually served elderly tenants. These projects include: Section 202 Direct Loans (prior to the Section 202 PRAC program) Section 221(d)(3) BMIR properties (New Construction and Substantial Rehabilitation)

Section 236 properties Answer question 5 as follows:

If there is an elderly restriction in accordance with Section 658 of Title VI-D, answer “Yes.” If there is no elderly restriction and occupancy is not limited to elderly applicants, answer “No.” (Do not leave blank).

6. If the property designates a number of units that can be occupied only by elderly persons, indicate the number of units. If the property does not have units that can only be occupied by elderly persons, enter zero “0”. (Do not leave blank).

7. If the property designates a number of units that can be occupied only by persons with disabilities, indicate the number of units. If the property does not have units that can only be occupied by persons with disabilities, enter zero “0”. (Do not leave blank).

8. If the property has units that must be occupied by non-elderly persons with disabilities, indicate the number of units. If the property does not have units that must be occupied by non-elderly persons with disabilities, enter zero “0”. (Do not leave blank).

CERTIFICATION: Self-Explanatory (Must be signed and dated by the owner) SECTION II - Owner/Agent must respond to all questions in this section. 1. Enter the total number of units (by bedroom size) and enter total in the ”Total” column. (Total must match numbers entered for each bedroom size. Do not leave blank.) 2. Enter the total number of units (by bedroom size) that are receiving project based rental assistance. (Total must match numbers entered for each bedroom size. Do not leave blank.) 3. Enter the number of mobility accessible units (by bedroom size) and enter total in the “Total” column. A mobility accessible unit is one that is located on an accessible route, and when designed, constructed, altered, or adapted, can be approached, entered, and used by individuals with

Project Name:

FHA/Project#


form HUD-9834 (04/07)



7-41

physical disabilities, including those who use wheelchairs. (Although accessibility features include items such as grab bars, flashing fire alarms, widened doorways, entrance ramps, etc, this question should be answered by stating the number of subsidized units that (when constructed) are fully accessible in accordance with the Uniform Federal Accessibility Standards (UFAS) which is used to ensure compliance with Section 504 of the Rehabilitation Act of 1973. These standards were jointly developed by the General Services Administration, the Department of Housing and Urban Development, the Department of Defense, and the United States Postal Service, under the authority of sections 2, 3, 4, and 4a, respectively, of the Architectural Barriers Act of 1968, as amended, Pub. L. No.90-480, 42 U.S.C. 4151-4157. Copies of the UFAS are available from the Architectural and Transportation Barriers Compliance Board , 1331 F Street, NW, Suite 1000, Washington, D.C. 20004-1111, Telephone: (202) 272-0080, email address: [email protected]. If the property is accessible in accordance with Minimum Property Standards (MPS), indicate the number of units that are MPS accessible. Unsubsidized units are not required to meet the requirements of UFAS, however those units should be counted if they are fully accessible to persons who use wheelchairs.) (Total must match numbers entered for each bedroom size. Do not leave blank) 4. Enter the number of units (by bedroom size) that are accessible for vision or hearing impairments and enter total in the “Total” column. (Refer to UFAS. See instruction number 3 above) (Total must match numbers entered for each bedroom size. Do not leave blank) 5. Total the units from rows 3 and 4 for each bedroom size and enter total in the “Total” column. (Total must match numbers entered for each bedroom size. Do not leave blank.) 6. Enter the number of persons currently on the waiting list for an accessible unit (by bedroom size) requiring the features of the unit and enter total in the “Total” column. (Total must match numbers entered for each bedroom size. Do not leave blank.) 7. Enter the number of accessible units (by bedroom size) that are currently occupied by elderly or family tenants and enter total in the Total column. (Total must match numbers entered for each bedroom size. Do not leave blank.) 8. Enter the number of accessible units (by bedroom size) occupied by non-elderly tenants with disabilities requiring the features of the unit and enter total in the “Total” column. (Total must match numbers entered for each bedroom size. Do not leave blank.) (These tenants must have a mobility impairment as defined above.) 9. Enter the number of accessible units (by bedroom size) occupied by elderly tenants with disabilities requiring the features of the unit and enter total in the “Total” column. (Total must match numbers entered for each bedroom size. Do not leave blank.) (These tenants must have a mobility impairment as defined above.) 10. Self-explanatory (Do not leave blank.) 11. Self-explanatory (Do not leave blank.) 12. Self-explanatory (Do not leave blank.) CERTIFICATION: Self-Explanatory (Must be signed and dated by the owner) SECTION III – Owner/Agent must respond to all questions in this section. (Not applicable to unsubsidized projects) The Section 504 Coordinator is required if the owner employs 15 or more employees in all its activities. This includes this project

combined with other projects they may own and/or manage. Answer Yes or No. If yes, proceed to Question 2; if no skip to Question 3. Answer Yes or No to this Question. If yes, please provide the name and telephone number of the coordinator for Section 504 related

activities at the project and go to Question 3. 3.Answer Yes or No to each item and provide comments as necessary. CERTIFICATION: Self-Explanatory (Must be signed and dated by the owner)

mailto:[email protected]�

Project Name:

FHA/Project#


form HUD-9834 (04/07)



7-42

PART B ON-SITE LIMITED MONITORING REVIEW

Authority: 24 CFR 5, 108, 110 Questions 1 through 4 apply to owners of subsidized and unsubsidized projects. YES NO COMMENTS 1. Was this project built or substantially rehabilitated after February 1972? (If NO, skip to Question 5.)

2. Does the owner have an approved Affirmative Fair Housing Marketing Plan (AFHMP) on site? If Yes, proceed to question 3. If No, proceed to question 5.

3. Has the owner/agent reviewed the AFHMP within the last 5 years to ensure that the information is current and applicable?

4. Date of last AFHMP Update

Date:

5. Does the project maintain Project Profile Data which shows the composition of the occupants by the following categories (24 CFR 121):

Race

National Origin/Ethnicity

Sex

Disability

Familial Status

6. Has the owner/agent developed and implemented a written Tenant Selection Plan?

Project Name:

FHA/Project#


form HUD-9834 (04/07)



7-43

YES NO COMMENTS 7. Does the management agent maintain a waiting list of applicants by:

(a) Name

(b) Bedroom size

(c) Application date and time?

(d) Requests for accommodations and/or accessible units?

(e) Preferences?

8. When a tenant/applicant notifies the owner/agent that he/she has been subject to unlawful discrimination, does the owner/agent provide the applicant/tenant with information about how to file a complaint with HUD?

Unable to Observe

9. Does the owner/agent maintain a record of fair housing complaints?

10. Is there a local residency preference?

If yes, was it approved by HUD?

Date of HUD Approval:

Project Name:

FHA/Project#


form HUD-9834 (04/07)



7-44

PART C Section 504 Review The Reviewer must complete this section to ensure compliance with Section 504 of the Rehabilitation Act of 1973 (Section 504). Please note that unsubsidized projects are not required to comply with Section 504, therefore if the project is unsubsidized, the Reviewer may proceed to Part D. YES NO COMMENTS 1. Is there a formal, written grievance procedure that provides for resolution of complaints alleging discrimination based on disability, as required by Section 8.53(b)?

If Yes, document date procedures were adopted: Date:

2. Does the owner/agent utilize a telecommunications device for the hearing impaired (TTY)?

If No: Is there an alternative procedure? Describe under “Comments”

3. When necessary, are auxiliary aides used to communicate with persons with disabilities? Describe under “Comments”

Project Name:

FHA/Project#


form HUD-9834 (04/07)



7-45

PART D DOCUMENTS REVIEWER SHOULD OBTAIN FROM OWNER/AGENT

The Reviewer will only bring back documents upon request from FHEO. If the Reviewer receives a request from FHEO to obtain certain documents, indicate in column a. During the on-site review, request the documents and indicate the status in columns b, c, or d. For items checked in column c, the Reviewer must provide the owner/agent the FHEO address for forwarding the documents.

Document(s)

a. FHEO has requested that the Reviewer obtain the following documents:

b. The document has been gathered and is attached to the Checklist

c. The Owner/ Agent agrees to forward the checked document to FHEO within ten (10) business days.

d. The document is not available.

For Part A 1. Accessible Units/Program Accessibility, Sections I, II, and III (as applicable)

For Part B: 2. Most recent Affirmative Fair Housing Marketing Plan (AFHMP)

3. Any of the following documents that are used for outreach as specifically stated in the project’s AFHMP or used for other affirmative fair housing marketing.

Newspapers/Publications

Copy of Radio Ads and Announcements Copy of TV Ads and Announcements

Photograph of billboards Letterhead Handouts Brochures and Leaflets Photograph and site signs

Other (Specify):

4. Project Profile showing occupancy data (See Part B, Question 5).

5. Written Tenant Selection Plan

Project Name:

FHA/Project#


form HUD-9834 (04/07)



7-46

Please Note: The information below only pertains to Section 504 compliance. If this project is unsubsidized, the Reviewer should not complete this section.

a. FHEO has requested that the Reviewer obtain the following documents:

b. The document has been gathered and is attached to the Checklist.

c. The Owner/ Agent agrees to forward the checked document to FHEO within ten (10) business days.

The document is not available.

For Part C: 6. Written Grievance Procedure (Part C,

Question 3 and 24 CFR 8.53)

7. Application for Occupancy

8. Reasonable Accommodation Policy FHEO requested that the reviewer observe the following: The result of the observation is:

ADDENDUM C OMB Approval No. 2502-0178

Exp. 09/30/08


7-47

ATTACHMENT 7C – ADDENDUM C DOCUMENTS TO BE MADE AVAILABLE BY OWNER/AGENT

Instructions: Reviewers should place a check mark next to those items that must be available for review.

General Documents

All Tenant Files and records (including rejected, transfer and move-out files) Current waiting list ` Last advertisement and/or copies of apartment brochures

HUD-approved Rent Schedule (HUD-92458) Procurement Files Work Order Journals/Logs Cash Disbursement Journal Fidelity Bond Property/Liability Insurance

Copies of the HUD-52670 for the last twelve months for each subsidy contract Current annual budget Quarterly budget variance reports

Reserve for Replacement Component Analysis Copy of Rent Roll Copy of Application Copy of Lease, lease addendums and house rules Copy of Pet Policy Copy of Applicant Rejection Letter Annual Unit Inspections Fact Sheet “How your rent is determined” Copy of the “Resident Rights & Responsibility” Lead Based Paint Certifications EH& S Certifications All Operating Procedure Manuals Documentation for Elderly Preferences Under Sections 651 or 658 Income Targeting Tracking Log List of all current Principals and Board Members Other

Civil Rights Front End Limited Monitoring and Section 504 Review Documents

Affirmative Fair Housing Marketing Plan Tenant Selection Plan Recent Advertising Fair Housing Logo and Fair Housing Poster



8-1

ATTACHMENT 8 – TENANT FILE ERROR SUMMARY Unit No. Tenant Family: Annual


TTP UA Tenant Rent

Assistance Payment

Total Discrepancy

Owner: $ $ $ $ $ $ HUD: $ $ $ $ $ $ $ Discussion: Unit No. Tenant Family: Annual


TTP UA Tenant Rent

Assistance Payment

Total Discrepancy



TTP UA Tenant Rent

Assistance Payment

Total Discrepancy



TTP UA Tenant Rent

Assistance Payment

Total Discrepancy

Owner: $ $ $ $ $ $ HUD: $ $ $ $ $ $ $ Discussion:



9-1

ATTACHMENT 9 – HUD-50059, OWNER’S CERTIFICATION OF COMPLIANCE WITH HUD’S TENANT ELIGIBILITY AND RENT PROCEDURES Owner’s Certification of Compliance U.S. Department of Housing NOT for Submission to the Federal Government with HUD’s Tenant Eligibility And Urban Development Landlord’s Official Record for Certification and Rent Procedures Office of Housing OMB Approval Number 2502-0204 Federal Housing Commissioner (Exp. 03/31/2011)

Section A. Acknowledgements Read this before you complete and sign this form HUD-50059

Public Reporting Burden. The reporting burden for this collection of information is estimated to average 55 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information including suggestions for reducing this burden, to the Office of Management and Budget, Paperwork Reduction Project (25020204), Washington, DC 20503. The information is being collected by HUD to determine an applicant's eligibility, the recommended unit size, and the amount the tenant(s) must pay toward rent and utilities. HUD uses this information to assist in managing certain HUD properties, to protect the Government's financial interest, and to verify the accuracy of the information furnished. HUD or a Public Housing Authority (PHA) may conduct a computer match to verify the information you provide. This information may be released to appropriate Federal, State, and local agencies, when relevant, and to civil, criminal, or regulatory investigators and prosecutors. However, the information will not be otherwise disclosed or released outside of HUD, except as permitted or required by law. You must provide all of the information requested, including the Social Security Numbers (SSNs) you, and all other household family members age six (6) years and older, have and use. Giving the SSNs of all family members age six (6) years and older is mandatory; not providing the SSNs will affect your eligibility. Failure to provide any information may result in a delay or rejection of your eligibility approval. Privacy Act Statement. The Department of Housing and Urban Development (HUD) is authorized to collect this information by the U.S. Housing Act of 1937, as amended (42 U.S.C. 1437 et. seq.); the Housing and Urban-Rural Recovery Act of 1983 (P.L. 98-181); the Housing and Community Development Technical Amendments of 1984 (P.L. 98-479); and by the Housing and Community Development Act of 1987 (42 U.S.C. 3543). Warning to Owners and Tenants. By signing this form, you are indicating that you have read the above Privacy Act Statement and are agreeing with the applicable Certification. False Claim Statement. Warning: U.S. Code, Title 31, Section 3729, False Claims, provides a civil penalty of not less than $5,000 and not more than $10,000, plus 3 times the amount of damages for any person who knowingly presents, or causes to be presented, a false or fraudulent claim; or who knowingly makes, or caused to be used, a false record or statement; or conspires to defraud the Government by getting a false or fraudulent claim allowed or paid. Owner's Certification -I certify that this Tenant's eligibility, rent and assistance payments have been computed in accordance with HUD's regulations and administrative procedures and that all required verifications were obtained. Tenant(s)' Certification -I/We certify that the information in Sections C, D, and E of this form are true and complete to the best of my/our knowledge and belief. I/We understand that I/we can be fined up to $10,000, or imprisoned up to five years, or lose the subsidy HUD pays and have my/our rent increased, if I/we furnish false or incomplete information.

Certification Summary from Page 2 Name of Project Unit Number Effective Date Certification Type

Head of Household Total Tenant Payment Assistance Payment Tenant Rent

Tenant Signatures Head of Household Date Other Adult Date

Spouse / Co-Head Date Other Adult Date

Other Adult Date Other Adult Date





9-2



Owner/Agent Signature Owner/Agent Date

Check this box if Tenant is unable to sign for a legitimate reason Anticipated Voucher Date

Previous versions of this form are obsolete. Page 1 of__ form HUD-50059 (04/2005) This form also replaces HUD-50059-D, -E, -F, & -G. HB 4350.3 Rev 1



9-3

Owner’s Certification of Compliance U.S. Department of Housing For Personal Records ONLY – Not for with HUD’s Tenant Eligibility And Urban Development Submission to the Federal Government and Rent Procedures Record for Landlords Office of Housing Federal Housing Commissioner (Exp. 03/31/2011)

Section B. Summary Information Project Name 1.

13. Effective Date 14. Anticipated Voucher Date 15. Next Recertification Date

25. Unit Number 26. No. of Bedrooms 27. Building ID 28. Unit Transfer Code 29. Previous Unit No. 30. Security Deposit 31. Market Rent 32. Contract Rent 33. Utility Allowance 34. Gross Rent 35. Conversion Date Code 36. Age 62 at Conversion Indicator 37. Continuous Section 8 Indicator

Subsidy Type Secondary Subsidy Type Property ID Project Number Contract Number TRACSMail ID Plan of Action Code HUD-Owned Project? Region Code Field Office Code FIPS County Code 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

16. Project Move-In Date 17. Unit Move-In Date 18. Certification Type 19. Action Processed 20. Correction Type 21. Cert. Correction Date 22. Prev. Subsidy Type 23. Previous Housing Code 24. Displacement Status Code

Section C. Household Information

38. No. 39. Last Name 40. First

Name 41. MI

42. Rel.

43. Sex

44. Race

45. Eth.

46. Birth Date

47. Special Status

48. ID Code (SSN)

49. Elig. Code

50. Alien Reg.

Number

51. Age at

Cert.

52. Work Codes

53. Family is Mobility Impaired? 54. Family is Hearing Impaired? 55. Family is Visually Impaired?

56. Number of Family Members 57. Number of Non-Family Members 58. Number of Dependents 59. Number of Eligible Members

60. Expected Family Addition -Adoption 61. Expected Family Addition -Pregnancy 62. Expected Family Addition -Foster Children

63. Previous Head Last Name 66. Previous Effective Date 64. Previous Head First Name 67. Previous Head ID 65. Previous Head Middle Initial 68. Previous Head Birth Date

Section D. Income Information Section E. Asset Information

69. Mbr. No.

70. Income Type Code 71. Amount

72. SSN Benefits

Claim No.

78. Mbr. No.

79. Description

80. Status

81. Cash Value

82. Actual Yearly Income

83. Date Divested



9-4

73. Total Employment Income 74. Total Pension Income 75. Total Public Assistance Income 76. Total Other Income 77. Total Non-Asset Income

84. Cash Value of Assets 85. Actual Income from Assets 86. HUD Passbook Rate 87. Imputed Income from Assets 88. Asset Income

Section F. Allowances & Rent Calculations 89. Total Annual Income 90. Lower Income Limit 91. Very Low Income Limit 92. Extremely Low Income Limit 93. Current Income Status 94. Eligibility Universe Code 95. Sec. 8 Assist. 1984 Indicator 96. Income Exception Code 97. Police / Security Tenant? 98. Survivor of Qualifier? 99. Household Assistance Status

100. Allowance for Dependents 101. Child Care Expense (work) 102. Child Care Expense (school) 103. 3% of Income 104. Disability Expense 105. Disability Allowance 106. Medical Expense 107. Medical Allowance 108. Elderly Household Allowance 109. Total Allowances 110. Adjusted Annual Income

111. Total Tenant Payment 112. Tenant Rent 113. Utility Reimbursement 114. Assistance Payment 115. Welfare Rent 116. HCDA percentage 117. Percent Actually Charged 118. Hardship Exemption 119. Waiver Type Code

Previous versions of this form are obsolete. Page 2 of__ form HUD-50059 (04/2005) This form also replaces HUD-50059-D, -E, -F, & -G. HB 4350.3 Rev 1



9-5

Owner’s Certification of Compliance U.S. Department of Housing For Personal Records ONLY – Not for with HUD’s Tenant Eligibility And Urban Development Submission to the Federal Government and Rent Procedures Record for Landlords Office of Housing Federal Housing Commissioner (Exp. 03/31/2011)

Name of Project Unit Number Effective Date Certification Type

Head of Household Total Tenant Payment Assistance Payment Tenant Rent

Section C. Household Information

38. No. 39. Last Name 40. First Name 41.

MI 42. Rel.

43. Sex

44. Race

45. Eth.

46. Birth Date

47. Special Status

48. ID Code (SSN)

49. Elig. Code

50. Alien Reg.

Number

51. Age at

Cert.

52. Work Codes

Section D. Income Information Section E. Asset Information 69. Mbr. No.

70. Income Type Code

71. Amount 72. SSN Benefits

Claim No.

78. Mbr. No.

79. Description 80. Status

81. Cash Value

82. Actual Yearly Income

83. Date Divested



9-6

Previous versions of this form are obsolete. Page __ of __ form HUD-50059 (04/2005) This form also replaces HUD-50059-D, -E, -F, & -G. HB 4350.3 Rev 1

September 2008 Attachment 10 – EIV Reports


10-1

ATTACHMENT 10– EIV REPORTS EIV Income Report (Summary)



10-2

EIV Income Report (Detail) Employment and Wages



10-3

EIV Income Report (Detail) Social Security



10-4

EIV Income Discrepancy Report (Summary)



10-5

EIV Income Discrepancy Report (Detail)



10-6

EIV New Hires Report (Summary

EIV New Hires Report (Detail)



10-7

EIV Multiple Subsidy Report (Summary)

EIV Multiple Subsidy Report (Detail)



10-8

EIV Existing Tenant Search

Search results – search within Multifamily TRACS and PIH PIC databases



10-9

EIV Identity Verification Report



10-10

EIV Failed EIV Pre-screening Report



10-11

EIV Failed Verification Report



10-12

EIV Deceased Tenant Report

September 2008 Attachment 11 - EIV Security Checklist


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ATTACHMENT 11– EIV SECURITY CHECKLIST EIV SECURITY CHECKLIST

SECURITY ASSESSMENT Reviewers should review the Owner’s/Agent’s (O/A’s) (1) security policies and procedures; (2) security and system access files; and (3) any other documents that will provide answers to the questions below. Reviewers may also want to conduct an interview with the O/A and/or other designated staff persons that have knowledge of the O/A’s security procedures and policies and are able to respond to the questions below. Questions – Place an “X” in the applicable box. Yes No

1. Does the O/A have a designated Security Office or equivalent?

2. Does the O/A have a Security Policies and Procedures document?

3. Does the O/A enforce security procedures?

4. Does the O/A keep records and monitor security issues?

5. Does the O/A conduct and document Security Awareness Training for EIV system users?

6. Does the O/A maintain a record of all EIV system users and their assigned roles?

7. Does the O/A ensure that each user has and uses his/her own user ID and password?

8. Does the O/A maintain copies of signed and access authorization and rules of behavior/user agreement forms for all EIV system users and coordinators?

9. Does the O/A maintain copies of the completed and signed Security Awareness Training Questionnaires for all EIV system users and coordinators?

10. Does the O/A conduct a quarterly review of all EIV User Ids to determine if users still have a valid need to access UIV data? (EIV quarterly User Certification process)

11. Does the O/A maintain a key control log to track the inventory of keys available for secure rooms, buildings or file cabinets?

12. Does the O/A maintain a log of all destroyed EIV system documents or have a record retention policy?

13. Does the O/A have valid (dated within the last 15 months) HUD-9887s in the reviewed tenant files?

14. Does the O/A document the occurrence of all improper disclosures of EIV system information in writing or have a procedure to document improper disclosures?

15. Does the O/A report any occurrence of unauthorized access or known security breaches to the designated HUD staff person(s) or have a procedure to report an occurrence of unauthorized access or known security breaches to the designated O/A/HUD staff persons(s)?

16. What security methods does the O/A use to provide physical security of EIV system data? Check all that apply: ( ) Restricted areas ( ) Locked file cabinets ( ) Locked rooms ( ) None

September 2008 Attachment 11 - EIV Security Checklist


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( ) Other (please specify) 17. How does the O/A dispose of EIV information once the data retention period has expired? Check all that apply. ( ) Burn ( ) Shred ( ) Erase ( ) Other (please specify) ( ) None

Rent and Income QC Guide - NHLP · 2018-10-25 · Rent and Income Determination Quality Control...

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Transcript of Rent and Income QC Guide - NHLP · 2018-10-25 · Rent and Income Determination Quality Control...